NVIDIA CorporationNVDA
NASDAQ • Technology
$220.61
P/E
44.75
PEG
0.47
FCF Yield
1.8%
Rev Growth YoY
+73.2% YoY
Gross Margin
75.0%
Health Score
9/10
D/E Ratio
0.07
Confidence
HIGH
Business Snapshot
NVIDIA is the dominant designer of graphics processing units (GPUs) and systems-on-a-chip for gaming, data centre AI, and professional visualisation, with its Blackwell architecture driving the current AI infrastructure wave. It operates in the semiconductor industry as the clear leader in AI accelerators, holding an estimated 80%+ of the data centre GPU market. As a mega-cap with a $5.38 trillion market capitalisation and $215.94 billion in trailing twelve-month revenue, it is one of the largest publicly traded companies globally. Its defining characteristic is an entrenched software ecosystem (CUDA) that creates high switching costs for developers and enterprises, reinforcing its competitive moat.
Financial Health
Gross margin of 75.0% has improved from 73.4% a year ago, while net margin stands at 55.6%, reflecting extraordinary operating leverage and pricing power in AI chips. Debt/equity of 0.07x and a current ratio of 3.91x indicate a fortress balance sheet with virtually no leverage and ample short-term liquidity...
Risk Assessment
- VALUATION — P/E of 44.75x exceeds the sector average of 35x, pricing in perfection and leaving little room for a growth disappointment.
- VALUATION DIVERGENCE — The FMP DCF ($240.18) and Python DCF ($95.33) estimates differ by more than 100%, creating wide uncertainty around intrinsic value.
- CASH FLOW — FCF yield of 1.8% is low despite $96.68 billion in absolute cash flow, suggesting the market prices growth well beyond current cash generation.
- VOLATILITY — Beta of 2.26 (from the DCF model parameters) indicates high sensitivity to broad market moves, amplifying downside in a risk-off environment....