Nvidia Corp (NASDAQ: NVDA)

Sector: Technology Industry: Semiconductors CIK: 0001045810
Market Cap 4,521.08 Bn
P/B 38.03
P/E 45.58
P/S 24.16
ROIC (Qtr) 77.25
Div Yield % 0.03
Rev 1y % (Qtr) 62.49
Total Debt (Qtr) 10.48 Bn
Debt/Equity (Qtr) 0.09

About

NVIDIA Corporation (NVDA) is a technology company that has revolutionized the way we compute and interact with data through its specialized design and manufacturing of graphics processing units (GPUs) and high-performance computing hardware. The company operates in the technology sector, with its main business activities centered on the development and production of GPUs used in various applications such as gaming, professional visualization, and artificial intelligence (AI). NVIDIA's GPUs are designed to provide high-performance computing capabilities,...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 83.16B provides robust 7.93x coverage of total debt 10.48B, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 11.49B provide 11.50x coverage of short-term debt 999M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 153.95B provides 14.69x coverage of total debt 10.48B, indicating robust asset backing and low credit risk.
  • Operating cash flow of 83.16B provides exceptional 336.68x coverage of interest expenses 247M, showing strong debt service capability.
  • Operating cash flow of 83.16B provides strong 13.69x coverage of stock compensation 6.07B, indicating sustainable incentive practices.

Bear case

  • Operating cash flow of 83.16B barely covers its investment activities of (28.57B), with a coverage ratio of -2.91, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (28.57B) provide weak support for R&D spending of 16.70B, which is -1.71x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 83.16B provides thin coverage of dividend payments of (977M) with a -85.12 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 11.49B provide limited coverage of acquisition spending of (1.07B), which is -10.68x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Short-term investments of 49.12B significantly exceed cash reserves of 11.49B, which is 4.28x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.

Segments Breakdown of Revenue (2025)

Product and Service Breakdown of Revenue (2025)

Peer comparison

Companies in the Semiconductors
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NVDA Nvidia Corp 4,521.08 Bn 45.58 24.16 10.48 Bn
2 TSM Taiwan Semiconductor Manufacturing Co Ltd 1,648.98 Bn 31.97 13.84 31.18 Bn
3 AVGO Broadcom Inc. 1,565.97 Bn 67.71 24.51 65.14 Bn
4 MU Micron Technology Inc 366.37 Bn 30.76 8.66 12.43 Bn
5 AMD Advanced Micro Devices Inc 333.34 Bn 100.83 10.41 3.87 Bn
6 INTC Intel Corp 271.33 Bn 1,370.33 5.08 46.55 Bn
7 QCOM Qualcomm Inc/De 199.55 Bn 36.01 4.51 14.81 Bn
8 TXN Texas Instruments Inc 172.17 Bn 34.14 9.97 14.05 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 28.05 4.13
EV to Cash from Ops. EV/CFO 54.35 -370.81
EV to Debt EV to Debt 431.23 88.27
EV to EBIT EV/EBIT 38.79 -65.23
EV to EBITDA EV/EBITDA 40.11 22.97
EV to Free Cash Flow [EV/FCF] EV/FCF 58.45 -8.14
EV to Market Cap EV to Market Cap 1.00 0.80
EV to Revenue EV/Rev 24.15 20.31
Price to Book Value [P/B] P/B 38.03 5.16
Price to Earnings [P/E] P/E 45.58 9.20
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 101.53 2.39
Dividend Payout Ratio % Div Payout % (Qtr) 1.00 8.25
Dividend per Basic Share Div per Share (Qtr) 0.04 0.63
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 1.26 9.91
Interest Coverage Int. cover (Qtr) 471.72 8.38
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -141.82 -155.98
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 26.12 45.60
Dividend Growth (1y) % Div 1y % (Qtr) 42.86 5.64
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 57.07 26.23
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 54.93 47.12
EBIT Growth (1y) % EBIT 1y % (Qtr) 59.25 25.83
EBT Growth (1y) % EBT 1y % (Qtr) 59.46 39.93
EPS Growth (1y) % EPS 1y % (Qtr) 57.98 24.64
FCF Growth (1y) % FCF 1y % (Qtr) 36.75 244.42
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 52.56 43.10
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.16 0.49
Cash Payout Ratio Cash Payout (Qtr) 0.01 0.09
Cash Ratio Cash Ratio (Qtr) 0.44 2.23
Current Ratio Curr Ratio (Qtr) 4.47 5.43
Debt to Equity Ratio Debt/Equity (Qtr) 0.09 0.34
Interest Cover Ratio Int Coverage (Qtr) 471.72 8.38
Times Interest Earned Times Interest Earned (Qtr) 471.72 8.38
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 63.60 -112.38
EBIT Margin % EBIT Margin % (Qtr) 62.26 -91.98
EBT Margin % EBT Margin % (Qtr) 62.13 -132.25
Gross Margin % Gross Margin % (Qtr) 70.10 47.73
Net Profit Margin % Net Margin % (Qtr) 53.00 -133.26