Nvidia (NVDA)
Information Technology · $4.31T market cap · SEC CIK 0001045810
ahead of 94% of the S&P 500 · #6 of 73 in Information Technology
Next reports on Nov 17, 2026, after the close, with analysts expecting $2.53 in earnings per share.
52-week range $164.27 to $243.37. 31% below its 52-week high and 3% above its low.
The case for NVDA
- Cheap for its growth: 22.3× earnings, where 25%+ a year of growth would justify about 46×.
- Generated $96.7B of free cash flow in FY2026, 45% of revenue.
- Earns 110% on shareholder equity.
- 64% of revenue drops through to net profit.
- Holds more cash ($10.6B) than long-term debt ($7.5B).
- Earnings per share up 125.2%.
The case against
- Near the bottom of its 52-week range, 31% below the high. Falling prices usually have a reason; find it first.
- Priced at 21× book value. Very little hard asset backing here.
- Swings harder than the market (beta 2.35).
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 74 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 95 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 88 |
| Momentumhow the price has behaved lately | 22 |
| Stabilityhow violently it moves, what it owes and what it pays you | 60 |
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
The financials
Revenue growth
Is the business growing? Yes
| Last 12 months | +83.4% |
|---|---|
| Over 5 years | +66.9% a year |
| FY2026 revenue | $216B (+65%) |
Free cash flow
Is it generating real cash? Yes, plenty
| FY2026 free cash flow | $96.7B |
|---|---|
| Of revenue | 45% |
| Of profit | 81% |
Profit margins
Is profitability improving? Yes, improving
| Gross margin | 75% |
|---|---|
| Operating margin | 65% |
| Net margin, FY25 → FY26 → now | 55.8% → 55.6% → 63.7% |
Debt vs. cash
Is the balance sheet healthy? Yes, more cash than debt
| Cash | $10.6B |
|---|---|
| Long-term debt | $7.5B |
| Net cash | $3.1B |
| Years to repay | 0.1 yrs |
Valuation
Is the stock price reasonable? Yes, it looks cheap
| P/E | 22.3× |
|---|---|
| Fair P/E for its growth | 46× |
| P/FCF | 44.5× |
| Forward P/E | 14.5× |
| EV / EBITDA | 21.5× |
At 22.3× earnings it trades well below the 46× that 25%+ a year of growth would justify. At 44.5× free cash flow it trades close to that same mark.
The financials, five years deep
Pulled from Nvidia's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2026 | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $216B | $130B | $60.9B | $27.0B | $26.9B |
| Change on the year | +65% | +114% | +126% | 0% | — |
| Free cash flow | |||||
| Free cash flow | $96.7B | $60.9B | $27.0B | $3.8B | $8.1B |
| Of revenue | 45% | 47% | 44% | 14% | 30% |
| Profit margins | |||||
| Gross margin | 71.1% | 75.0% | 72.7% | 56.9% | 64.9% |
| Operating margin | 60.4% | 62.4% | 54.1% | 15.7% | 37.3% |
| Net margin | 55.6% | 55.8% | 48.8% | 16.2% | 36.2% |
| Debt vs. cash | |||||
| Cash | $10.6B | $8.6B | $7.3B | $3.4B | $2.0B |
| Long-term debt | $7.5B | $8.5B | $8.5B | $9.7B | $10.9B |
| Net cash (debt) | $3.1B | $126M | −$1.2B | −$6.3B | −$9.0B |
What Nvidia says it does
Our Company NVIDIA pioneered accelerated computing to help solve the most challenging computational problems. NVIDIA is now a data center scale AI infrastructure company reshaping all industries. Our technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits, or SDKs, and application programming interfaces, or APIs. This deep and broad software stack accelerates the performance and facilitates the deployment of NVIDIA accelerated computing for computationally intensive workloads such as artificial intelligence, or AI, model training and inference, data analytics, scientific computing, robotics, and 3D graphics, with vertical-specific optimizations to address industries ranging from healthcare and telecom to automotive and manufacturing. Introduced with the Blackwell architecture,…
Risk factors NVDA lists in its 10-K
- Failure to meet the evolving needs of our industry and markets may adversely impact our financial results
- Competition could adversely impact our market share and financial results
- Long manufacturing lead times and uncertain supply and capacity availability, combined with a failure to estimate customer demand accurately, has led and could lead to mismatches between supply and demand
- Defects in our products have caused and could cause us to incur significant expenses to remediate, which can damage our reputation and cause us to lose market share
- Adverse economic conditions may harm our business
- International sales and operations are a significant part of our business, which exposes us to risks that could harm our business
- Product, system security, and data protection incidents or breaches, as well as cyber-attacks, could disrupt our operations, reduce our expected revenue, increase our expenses, and significantly harm our business and reputation
- Business disruptions could harm our operations, lead to a decline in revenue and increase our costs
- Climate change may have a long-term impact on our business
- Commercial arrangements expose us to counterparty risks
- If we are unable to attract, retain and motivate our executives and key employees, our business may be harmed
- Our business is dependent upon the proper functioning of our business processes and information systems and modification or interruption of such systems may disrupt our business and internal controls
- Our operating results have in the past fluctuated and may in the future fluctuate, and if our operating results are below the expectations of securities analysts or investors, our stock price could decline
- We are subject to complex laws, rules, regulations, and political and other actions, including restrictions on the export of our products, which may adversely impact our business
- Issues relating to the responsible use of our technologies, including AI in our offerings, may result in reputational or financial harm and liability
- Actions to adequately protect our IP rights could result in substantial costs to us and our ability to compete could be harmed if we are unsuccessful or if we are prohibited from making or selling our products
- We may have exposure to additional tax liabilities and our operating results may be adversely impacted by changes in tax laws, higher than expected tax rates and other tax-related factors
- Our business is exposed to the burden and risks associated with litigation, investigations and regulatory proceedings
- Delaware law and our certificate of incorporation, bylaws and agreement with Microsoft could delay or prevent a change in control