One-glance verdict
Overvalued
$132.28 our estimate vs market $212.06
Wall Street consensus: $302.83 (128.9% higher than our fair-value estimate)
60% above our estimate, beyond the bull case
Fundamentals snapshot
NVIDIA Corporation
NVDA · NMS · Technology · Semiconductors
Current price
$212.06
52-week range
$164.07 - $236.54
Market cap
$5.14T
Balance sheet
Healthy
503.42x Strong cushion
Net cash $40.36B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 17.4% last year.
- Reward Returns 114.3% on equity, ahead of 83% of its peers.
- Reward Free cash flow was positive in 6/10 years.
What this company does
NVIDIA Corporation
NVIDIA designs high-performance computer chips, known as GPUs, that were first made for realistic video games but are now essential for powering artificial intelligence. The company's main business is now selling these powerful chips in bulk to companies for their data centers (the huge computer warehouses that run AI applications), making NVIDIA a critical supplier for the booming AI industry.
How the company got here
NVIDIA was started in 1993 by three founders who believed that personal computers would need specialized chips for better graphics, especially for video games. For many years, their main business was creating these graphics processing units (GPUs), which are like special-purpose brains for computers that are very good at handling many tasks at once. A major turning point came in 2006 when they created a software platform called CUDA, which allowed their GPUs to be used for more than just graphics, opening them up to scientific and research applications. This pivot was crucial because it positioned them perfectly for the recent explosion in artificial intelligence (AI), as their GPUs turned out to be ideal for training the complex systems behind AI.
What it actually does
NVIDIA designs high-powered computer chips, most famously the Graphics Processing Unit or GPU. Think of a regular computer chip (a CPU, or central processing unit) as a manager that's good at handling tasks one by one, while a GPU is like having a huge team of workers who can all tackle small parts of a big job at the same time. Originally made to create realistic graphics for video games, these chips are now the workhorses behind the artificial intelligence boom, powering everything from AI chatbots to self-driving car technology. NVIDIA doesn't just sell the chips; it also provides the critical software and networking hardware that allows thousands of these chips to work together in massive data centers, which are like the giant brains of the internet.
Compute & Networking
This is NVIDIA's largest and fastest-growing business by far, making up the vast majority of the company's revenue. This segment sells the powerful chips, networking equipment, and software that are the building blocks for 'AI factories'—huge data centers that create artificial intelligence. Its main customers are giant cloud service providers (companies that rent out computing power over the internet), large corporations, and governments who buy these systems to train and run AI applications. This part of the company has grown incredibly fast because of the massive demand for AI capabilities across all industries.
Graphics
This is NVIDIA's original business and includes its well-known GeForce GPUs for PC gaming and professional design. Gamers buy these products to get the best possible visual experience in their video games, while creative professionals like architects and animators use the professional-grade GPUs (called NVIDIA RTX) for creating detailed 3D models and special effects. While it was once the core of the company, the Graphics segment is now a much smaller piece of NVIDIA's total sales compared to its Data Center business. This segment also includes technology for automotive infotainment systems (the screens and computers in your car's dashboard).
What management is betting on now
NVIDIA's leadership is focused on the idea that every industry is becoming a technology industry powered by AI. They are betting that companies and countries will continue to build out 'AI factories'—massive data centers that produce intelligence—and that this will be one of the largest infrastructure buildouts in history. To capture this opportunity, the company is not just creating more powerful chips, but also the high-speed networking equipment and complex software needed to connect them all together into a single, powerful system. They are also pushing into new areas like robotics and 'physical AI,' where AI controls real-world objects, from self-driving cars to automated factories.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q2
$13.51B
FY2025 Q3
$16.81B
FY2025 Q4
$15.55B
FY2026 Q1
$26.19B
FY2026 Q2
$13.47B
FY2026 Q3
$22.11B
FY2026 Q4
$34.90B
FY2027 Q1
$48.59B
Revenue
$81.61B
Net income
$58.32B
Diluted EPS
2.39
Operating cash flow
$50.34B
Free cash flow
$48.59B
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Sources
Revenue
$68.13B
Net income
$42.96B
Diluted EPS
1.76
Operating cash flow
$36.19B
Free cash flow
$34.90B
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Sources
Revenue
$57.01B
Net income
$31.91B
Diluted EPS
1.30
Operating cash flow
$23.75B
Free cash flow
$22.11B
Fetching…
Sources
Revenue
$46.74B
Net income
$26.42B
Diluted EPS
1.08
Operating cash flow
$15.37B
Free cash flow
$13.47B
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Sources
Revenue
$44.06B
Net income
$18.77B
Diluted EPS
0.76
Operating cash flow
$27.41B
Free cash flow
$26.19B
Fetching…
Sources
Revenue
$39.33B
Net income
$22.09B
Diluted EPS
-4.49
Operating cash flow
$16.63B
Free cash flow
$15.55B
Fetching…
Sources
Revenue
$35.08B
Net income
$19.31B
Diluted EPS
0.78
Operating cash flow
$17.63B
Free cash flow
$16.81B
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Sources
Revenue
$30.04B
Net income
$16.60B
Diluted EPS
0.67
Operating cash flow
$14.49B
Free cash flow
$13.51B
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Sources
Is it cheap or expensive?
Fair value $132.28 vs current price $212.06
Wall Street consensus is the average analyst price target: $302.83 (128.9% higher than our fair-value estimate).
Our most-likely fair value is $132.28 a share — about 37.6% below today's price of $212.06, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $40.4B - more cash than debt. Interest coverage 503.4x.
Net debt
$-40.36B
Interest coverage
503.42x
NVIDIA Corporation's profit covers its interest bill about 503.4 times over. which is stronger than every peer shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
NVDA
BASELINE
NVIDIA Corporation
Total debt $12.81B Interest coverage 503.42x This is the baseline the peer rows are being compared against.
Total debt $3.87B Interest coverage 28.20x -94% vs NVDA Carries about 17.9x less debt cushion than NVDA.
Total debt $64.91B Interest coverage 8.12x -98% vs NVDA Carries about 62.0x less debt cushion than NVDA.
Total debt $30.44B Interest coverage 156.51x -69% vs NVDA Carries about 3.2x less debt cushion than NVDA.
Total debt $45.03B Interest coverage -0.02x -100% vs NVDA This peer has almost no interest-payment cushion compared with NVDA.
Total debt $6.38B Interest coverage 20.56x -96% vs NVDA Carries about 24.5x less debt cushion than NVDA.
What you should know
The case for and against NVDA
3 Rewards
0 Risks
Rewards
-
Revenue grew 17.4% last year.
-
Returns 114.3% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 6/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
31.75x
Forward P/E
16.48x
P/B
26.28x
P/S
20.26x
EV/EBITDA
30.76x
PEG ratio
0.57x
Profitability
How much profit each dollar creates
Gross margin
74.1%
Operating margin
65.6%
Net margin
63.0%
ROE
114.3%
ROA
52.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.07x
Current ratio
3.44x
Quick ratio
2.14x
Total debt
$12.81B
Total cash
$53.17B
Growth
How the business has been compounding
Revenue TTM
$253.49B
Revenue 5Y CAGR
68.3%
EPS TTM
6.68
EPS 5Y CAGR
204.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$125.65B
Free CF TTM
$96.68B
FCF margin
38.1%
Dividend
Shareholder payout
Yield
0.5%
Payout ratio
0.6%
Last ex-div date
2026-06-04