NVIDIA CorporationNVDA
NMS • Technology
$216.85
P/E
33.06
PEG
0.16
FCF Yield
1.8%
Rev Growth YoY
+85.2% YoY
Gross Margin
74.9%
Health Score
9/10
D/E Ratio
0.04
Confidence
MEDIUM
Business Snapshot
NVIDIA designs and sells graphics processing units (GPUs) and related software, with its data center segment serving as the primary revenue engine amid the AI computing buildout. The company operates in the semiconductor industry, holding a dominant leadership position as the primary supplier of AI accelerators, evidenced by its massive financial scale. With a market capitalization of $5.25T and TTM revenue of $253.49B, NVIDIA sits firmly in the mega-cap tier, ranking among the largest publicly traded companies globally. The defining characteristic setting NVIDIA apart is its formidable market position in AI computing, where its GPU platforms have become the industry standard for training large-scale AI models, reinforced by a strong software ecosystem and customer switching costs that create a durable competitive moat.
Financial Health
Gross margin stands at 74.9%, essentially flat versus 75.0% in the prior year, while net margin on a TTM basis is a deeply impressive 63.0%, reflecting exceptional pricing power and operating leverage. The balance sheet is fortress-like, with debt-to-equity of just 0.04x and a current ratio of 3.44x, indicating ample liquidity and minimal financial leverage...
Risk Assessment
- VALUATION — Price-to-sales of 20.72x and price-to-book of 26.87x are exceptionally elevated by historical standards, leaving limited margin for error if growth decelerates.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- VALUATION DIVERGENCE — The Python DCF estimate of $95.33 diverges by over 125% from the current share price of $216.85, and given the FMP DCF is not available, a wide range of intrinsic value estimates exists; the model also carries high sensitivity to the 3.0% terminal growth assumption.
- CONCENTRATION — The business is heavily concentrated in AI accelerator demand within the data center market, creating earnings vulnerability to a single technology cycle or customer spending shift.
- 52-WEEK POSITION — The current price of $216.85 sits 8.3% below the 52-week high of $236.54 and remains well above the midpoint of $200.31, suggesting the stock has already captured substantial appreciation and may face resistance near prior highs....
Gross margin stands at 74.9%, essentially flat versus 75.0% in the prior year, while net margin on a TTM basis is a deeply impressive 63.0%, reflecting exceptional pricing power and operating leverage. The balance sheet is fortress-like, with debt-to-equity of just 0.04x and a current ratio of 3.44x, indicating ample liquidity and minimal financial leverage. Free cash flow is a substantial $96.68B in absolute terms, though the FCF yield of 1.8% is modest relative to the company's elevated market valuation. Overall financial health is exceptional, affording NVIDIA enormous capacity for dividend increases, share buybacks, and aggressive reinvestment into R&D and supply chain capacity without any meaningful risk of dilution or financial distress.
- VALUATION — Price-to-sales of 20.72x and price-to-book of 26.87x are exceptionally elevated by historical standards, leaving limited margin for error if growth decelerates. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - VALUATION DIVERGENCE — The Python DCF estimate of $95.33 diverges by over 125% from the current share price of $216.85, and given the FMP DCF is not available, a wide range of intrinsic value estimates exists; the model also carries high sensitivity to the 3.0% terminal growth assumption. - CONCENTRATION — The business is heavily concentrated in AI accelerator demand within the data center market, creating earnings vulnerability to a single technology cycle or customer spending shift. - 52-WEEK POSITION — The current price of $216.85 sits 8.3% below the 52-week high of $236.54 and remains well above the midpoint of $200.31, suggesting the stock has already captured substantial appreciation and may face resistance near prior highs.
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