One-glance verdict
Overvalued
$131.99 our estimate vs market $221.97
Wall Street consensus: $328.72 (149.1% higher than our fair-value estimate)
68% above our estimate, beyond the bull case
Fundamentals snapshot
NVIDIA Corporation
NVDA · NMS · Technology · Semiconductors
Current price
$221.97
52-week range
$164.27 - $243.37
Market cap
$5.36T
Balance sheet
Healthy
503.42x Strong cushion
Net cash $23.61B. 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 40.3% last year.
- Reward Returns 117.2% 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 makes powerful computer chips that act as the "brains" for artificial intelligence, realistic video games, and even self-driving cars. The company earns most of its money by selling these specialized chips to data centers (massive warehouses of computers that power internet services) which need them to build AI applications. Because its technology is currently essential for the global AI boom, NVIDIA has become a critical supplier to nearly every major tech company.
How the company got here
NVIDIA was founded in 1993 with the goal of making better graphics for video games. A major turning point came in 1999 when they invented the Graphics Processing Unit, or GPU, a special kind of computer chip that could handle intense visual information very quickly. Years later, in 2006, they created a software platform called CUDA which allowed developers to use these powerful GPUs for more than just graphics. This discovery was revolutionary, as researchers found GPUs were perfect for the complex math needed for artificial intelligence (AI), transforming NVIDIA from a gaming company into a leader in AI technology.
What it actually does
NVIDIA designs high-powered computer chips, most famously the Graphics Processing Unit (GPU). Think of these as specialized brains for computers that are incredibly good at handling many tasks at once, which is essential for creating realistic video game graphics and powering artificial intelligence applications like ChatGPT. The company doesn't actually build the chips itself; it designs them and then partners with other companies for manufacturing. NVIDIA's real value comes from these designs and the massive software ecosystem (a collection of tools and programs for developers) it has built, which makes its chips the top choice for AI developers and data centers.
Compute & Networking
This is now NVIDIA's largest and fastest-growing business by far, making up about 90% of the company's sales. This segment sells the powerful GPUs, systems, and networking equipment that are the building blocks for data centers (the massive computer warehouses that power the internet and cloud services). Its main customers are giant cloud providers like Amazon and Microsoft, as well as large companies and governments building "AI factories" to develop and run artificial intelligence programs. The incredible demand for AI has caused this part of the business to grow dramatically, shifting it from a secondary focus to the company's main engine.
Graphics
This was NVIDIA's original and most well-known business for many years. It includes the popular GeForce brand of GPUs that are put into desktop and laptop computers for gamers and creative professionals who need powerful graphics for things like video editing and 3D design. While this segment has not grown as explosively as the data center business, it still provides a steady and profitable source of revenue (the money a company makes from sales). It now represents a much smaller slice of the company's total income, around 7-8%.
What management is betting on now
NVIDIA's strategy is to be the essential provider for the entire AI industry, selling not just chips but complete systems that function like "AI factories." The company is investing heavily in creating the full stack (the combination of hardware, software, and networking) that companies need to build and run AI. Management is also focused on expanding into new areas where its technology can be used, such as autonomous vehicles, robotics, and creating digital twins (virtual models of real-world objects or systems). To stay ahead, the company is also making strategic acquisitions (buying other companies) to bring in new technology and talent, particularly in AI software and robotics.
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 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
FY2027 Q2
$21.40B
Revenue
$96.22B
Net income
$59.69B
Diluted EPS
2.46
Operating cash flow
$24.08B
Free cash flow
$21.40B
Fetching…
Sources
Revenue
$81.61B
Net income
$58.32B
Diluted EPS
2.39
Operating cash flow
$50.34B
Free cash flow
$48.59B
Fetching…
Sources
Revenue
$68.13B
Net income
$42.96B
Diluted EPS
1.76
Operating cash flow
$36.19B
Free cash flow
$34.90B
Fetching…
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
Fetching…
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
Fetching…
Sources
Is it cheap or expensive?
Fair value $131.99 vs current price $221.97
Wall Street consensus is the average analyst price target: $328.72 (149.1% higher than our fair-value estimate).
Our most-likely fair value is $131.99 a share — about 40.5% below today's price of $221.97, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $23.6B - more cash than debt. Interest coverage 503.4x.
Net debt
$-23.61B
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 $38.86B Interest coverage 503.42x This is the baseline the peer rows are being compared against.
Total debt $4.28B Interest coverage 28.20x -94% vs NVDA Carries about 17.9x less debt cushion than NVDA.
Total debt $59.42B Interest coverage 8.12x -98% vs NVDA Carries about 62.0x less debt cushion than NVDA.
Total debt $128.81B Interest coverage 50.88x -90% vs NVDA Carries about 9.9x less debt cushion than NVDA.
Total debt $50.54B Interest coverage -0.02x -100% vs NVDA This peer has almost no interest-payment cushion compared with NVDA.
Total debt $15.27B Interest coverage 18.67x -96% vs NVDA Carries about 27.0x less debt cushion than NVDA.
What you should know
The case for and against NVDA
3 Rewards
0 Risks
Rewards
-
Revenue grew 40.3% last year.
-
Returns 117.2% 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)
28.06x
Forward P/E
13.95x
P/B
23.41x
P/S
17.69x
EV/EBITDA
26.46x
PEG ratio
0.27x
Profitability
How much profit each dollar creates
Gross margin
74.7%
Operating margin
66.2%
Net margin
63.7%
ROE
117.2%
ROA
53.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.17x
Current ratio
4.59x
Quick ratio
2.92x
Total debt
$38.86B
Total cash
$62.47B
Growth
How the business has been compounding
Revenue TTM
$302.97B
Revenue 5Y CAGR
68.3%
EPS TTM
7.91
EPS 5Y CAGR
204.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$134.36B
Free CF TTM
$96.68B
FCF margin
31.9%
Dividend
Shareholder payout
Yield
0.4%
Payout ratio
3.5%
Last ex-div date
2026-09-10