NVIDIA CorporationNVDA
NASDAQ • Technology
$194.83
P/E
29.84
PEG
0.14
FCF Yield
2.0%
Rev Growth YoY
+85.2% YoY
Gross Margin
74.1%
Health Score
10/10
D/E Ratio
0.07
Confidence
MEDIUM
Business Snapshot
NVIDIA is the dominant designer of graphics processing units and system-on-a-chip solutions for the gaming, professional visualization, data center, and automotive markets, with its data center segment now being the primary revenue driver driven by accelerating demand for AI computing. It operates at the center of the artificial intelligence infrastructure buildout, holding a commanding competitive position with an estimated 80%+ share of the AI accelerator market, making it the de facto standard for training and deploying large language models. With a market capitalization of $4.72 trillion and trailing twelve-month revenue of $253.49 billion, NVIDIA is a mega-cap technology behemoth that has seen explosive growth. A defining characteristic is its unparalleled competitive moat built on the CUDA software ecosystem, which tightly integrates its hardware with developer workflows, creating massive switching costs for customers.
Financial Health
NVIDIA’s financial health is exceptional, anchored by a 74.1% gross margin and a 63.0% net margin—indicating phenomenal pricing power and operating leverage that are among the highest in all of technology. The balance sheet is fortress-grade, with a Debt/Equity ratio of just 0.07x and a current ratio of 3.91x, leaving essentially no liquidity risk and massive capacity to self-fund operations and R&D...
Risk Assessment
- VALUATION DIVERGENCE — The FMP DCF fair value of $244.85 and the Python DCF estimate of $95.33 differ wildly, indicating high model sensitivity and uncertainty around intrinsic value.
- TECHNICALS — RSI at 41.2 is neutral, MACD is bearish, and the current price of $194.83 is trading below the 50-day moving average of $209.65, suggesting short-term momentum is weak.
- INSIDER ACTIVITY — Insiders have executed 0 buys versus 2 sells over the last 90 days, a net-selling pattern that could signal that those closest to the business see limited near-term upside.
- 52-WEEK POSITION — The current price of $194.83 is well below the 52-week high of $236.54 and below the midpoint of the range ($196.94), indicating the stock has pulled back from its peak and is trading in the lower half of its yearly range....
NVIDIA’s financial health is exceptional, anchored by a 74.1% gross margin and a 63.0% net margin—indicating phenomenal pricing power and operating leverage that are among the highest in all of technology. The balance sheet is fortress-grade, with a Debt/Equity ratio of just 0.07x and a current ratio of 3.91x, leaving essentially no liquidity risk and massive capacity to self-fund operations and R&D. Free cash flow stands at $96.68 billion, translating to a 2.0% FCF yield; while the yield appears modest relative to the stock price, the absolute cash generation is staggering. The Return on Equity of 114.3% confirms that NVIDIA is compounding shareholder capital at an extraordinary rate. For an investor, this financial profile supports enormous reinvestment into R&D, potential for dividend growth, and aggressive share buybacks with no risk of dilution.
- VALUATION DIVERGENCE — The FMP DCF fair value of $244.85 and the Python DCF estimate of $95.33 differ wildly, indicating high model sensitivity and uncertainty around intrinsic value. - TECHNICALS — RSI at 41.2 is neutral, MACD is bearish, and the current price of $194.83 is trading below the 50-day moving average of $209.65, suggesting short-term momentum is weak. - INSIDER ACTIVITY — Insiders have executed 0 buys versus 2 sells over the last 90 days, a net-selling pattern that could signal that those closest to the business see limited near-term upside. - 52-WEEK POSITION — The current price of $194.83 is well below the 52-week high of $236.54 and below the midpoint of the range ($196.94), indicating the stock has pulled back from its peak and is trading in the lower half of its yearly range.
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