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NVIDIA (NVDA) Stock Analysis

This is a peer-relative look at NVIDIA (NVDA): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Semiconductors & Semiconductor Equipment peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for NVIDIA (NVDA)
Profile ItemNVDA
NameNVIDIA Corporation
Country/RegionUnited States
GICS SectorInformation Technology
GICS Industry GroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
GICS Sub-IndustrySemiconductors
Market Capitalization5,562.50 billion USD
CurrencyUSD
ExchangeNasdaq
Listing DateJanuary 22, 1999
Security TypeCommon Stock

Price Performance

Cumulative Growth

NVDA
GSPC
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NVIDIA (NVDA) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for NVIDIA (NVDA) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for NVIDIA (NVDA) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

NVIDIA (NVDA) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
MetricCurrent stock: NVDAIndustry group median
Total Return (1Y)34.37%71.70%
Total Return (3Y, Annualized)68.19%18.51%
Total Return (5Y, Annualized)58.86%13.12%

Risk Profile

Drawdown History

NVDA
GSPC
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NVIDIA (NVDA) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for NVIDIA (NVDA) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

NVIDIA (NVDA) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
MetricCurrent stock: NVDAIndustry group median
Volatility (1Y, Annualized)38.12%72.33%
Beta (5Y)2.221.79
Max Drawdown (5Y)-66.34%-64.51%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. NVDA is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

NVIDIA (NVDA) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
MetricCurrent stock: NVDAIndustry group median
Sharpe Ratio (1Y)0.791.01
Sortino Ratio (1Y)1.201.60

Profitability

ROE (TTM)

NVIDIA (NVDA) posts ROE of 117.21%, above the industry benchmark range. Equity is being turned into profit at an exceptional rate, but very high ROE should still be checked against leverage, buybacks, and the size of the equity base.

NVDA

Semiconductors & Semiconductor Equipment industry group

117.21%

Group distribution
NVDA
117.21%
Max
53.94%
Q3
20.35%
Median
9.12%
Q1
-3.10%
Min
-21.32%
Largest peers
SKHY
354.06%
NVDA
117.21%
MU
66.64%
ASML
53.94%
AVGO
44.25%
TSM
39.97%
AMD
10.20%
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Where NVIDIA (NVDA) stands on ROE within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

NVIDIA (NVDA) keeps 63.66% of revenue as net profit on net margin, above the industry benchmark range. That is unusually strong bottom-line conversion, though tax effects, asset sales, or other one-off gains should be checked before treating it as durable.

NVDA

Semiconductors & Semiconductor Equipment industry group

63.66%

Group distribution
NVDA
63.66%
Max
55.91%
Q3
23.05%
Median
9.86%
Q1
0.00%
Min
-34.50%
Largest peers
SKHY
85.62%
NVDA
63.66%
MU
55.91%
TSM
49.92%
AVGO
42.94%
ASML
30.11%
AMD
15.58%
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Where NVIDIA (NVDA) stands on net margin within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

NVIDIA (NVDA) turns 66.24% of revenue into operating profit on operating margin, above the industry benchmark range. Core operations are retaining an unusually large share before interest and taxes, which points to pricing power or tight cost control if the margin is sustainable.

NVDA

Semiconductors & Semiconductor Equipment industry group

66.24%

Group distribution
NVDA
66.24%
Max
54.31%
Q3
23.49%
Median
14.56%
Q1
-0.14%
Min
-31.62%
Largest peers
MU
80.37%
SKHY
76.33%
NVDA
66.24%
TSM
60.34%
AVGO
54.31%
ASML
37.06%
AMD
17.25%
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Where NVIDIA (NVDA) stands on operating margin within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

NVIDIA (NVDA) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
MetricCurrent stock: NVDAIndustry group median
ROE (TTM)117.21%9.12%
ROA (TTM)53.57%4.12%
Net Margin (TTM)63.66%9.86%
Operating Margin (TTM)66.24%14.56%
Gross Margin (TTM)74.67%49.13%

Growth

Revenue Growth

NVIDIA (NVDA) grew revenue 65.47%, above the industry benchmark range. Demand is expanding faster than at any typical peer, though growth that far ahead of the group is worth checking for acquisitions or other one-off contributions.

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NVIDIA (NVDA): Revenue Growth across different time periods, set against Semiconductors & Semiconductor Equipment industry-group medians.

EPS Growth

NVIDIA (NVDA) grew earnings per share 66.67%, in the upper peer quartile. Per-share profits are compounding faster than at most industry peers.

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NVIDIA (NVDA): EPS Growth across different time periods, set against Semiconductors & Semiconductor Equipment industry-group medians.

Growth Metrics

NVIDIA (NVDA) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
MetricCurrent stock: NVDAIndustry group median
Revenue Growth (YoY)65.47%9.67%
Revenue Growth (3Y CAGR)100.05%-0.30%
EPS Growth (YoY)66.67%4.81%
EPS Growth (3Y CAGR)204.24%-8.36%

Financial Strength

Current Ratio (MRQ)

NVIDIA (NVDA) has current ratio of 4.59, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.

NVDA

Semiconductors & Semiconductor Equipment industry group

4.59

Group distribution
Max
10.12
Q3
5.49
NVDA
4.59
Median
3.44
Q1
2.30
Min
1.03
Largest peers
SKHY
17.24
NVDA
4.59
MU
3.43
AMD
2.61
AVGO
2.50
TSM
2.46
ASML
1.33
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Where NVIDIA (NVDA) stands on current ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

NVIDIA (NVDA) has debt-to-equity ratio of 0.17, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

NVDA

Semiconductors & Semiconductor Equipment industry group

0.17

Group distribution
Max
1.44
Q3
0.65
Median
0.19
NVDA
0.17
Q1
0.04
Min
0.00
Largest peers
SKHY
0.72
AVGO
0.60
NVDA
0.17
TSM
0.17
ASML
0.09
AMD
0.06
MU
0.06
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Where NVIDIA (NVDA) stands on debt-to-equity ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

NVIDIA (NVDA) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
MetricCurrent stock: NVDAIndustry group median
Current Ratio (MRQ)4.593.44
Debt / Equity (MRQ)0.170.19
Net Debt / EBITDA-0.12-0.38

Dividends

Dividend Yield (TTM)

NVIDIA (NVDA) has dividend yield of 0.12%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

NVDA

Semiconductors & Semiconductor Equipment industry group

0.12%

Group distribution
Max
0.85%
Q3
0.36%
NVDA
0.12%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
SKHY
2,291.06%
TSM
6.23%
AVGO
0.73%
ASML
0.26%
NVDA
0.12%
MU
0.06%
AMD
0.00%
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Where NVIDIA (NVDA) stands on dividend yield within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

NVIDIA (NVDA) has payout ratio of 3.54%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.

NVDA

Semiconductors & Semiconductor Equipment industry group

3.54%

Group distribution
Max
45.89%
Q3
18.55%
NVDA
3.54%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
AVGO
32.40%
ASML
29.72%
TSM
25.74%
NVDA
3.54%
MU
1.12%
SKHY
0.00%
AMD
0.00%
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Where NVIDIA (NVDA) stands on payout ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

NVIDIA (NVDA) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
MetricCurrent stock: NVDAIndustry group median
Dividend Yield (TTM)0.12%0.00%
Dividend Payout Ratio (TTM)3.54%0.00%

Valuation

P/E Ratio (TTM)

NVIDIA (NVDA) trades at P/E ratio of 29.16, in the cheaper earnings-multiple quartile for its industry. Investors are paying less for each dollar of TTM earnings than they usually pay for comparable businesses.

NVDA

Semiconductors & Semiconductor Equipment industry group

29.16

Group distribution
Max
153.66
Q3
87.88
Median
45.74
Q1
31.84
NVDA
29.16
Min
10.37
Largest peers
AMD
121.83
ASML
58.13
AVGO
45.65
TSM
31.84
NVDA
29.16
MU
22.99
SKHY
10.58
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Where NVIDIA (NVDA) stands on P/E ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

NVIDIA (NVDA) trades at 18.36 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.

NVDA

Semiconductors & Semiconductor Equipment industry group

18.36

Group distribution
Max
32.20
NVDA
18.36
Q3
16.84
Median
6.93
Q1
3.28
Min
0.01
Largest peers
AVGO
19.11
AMD
18.87
ASML
18.65
NVDA
18.36
MU
12.72
TSM
0.50
SKHY
0.01
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Where NVIDIA (NVDA) stands on P/S ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

NVIDIA (NVDA) trades at 24.29 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.

NVDA

Semiconductors & Semiconductor Equipment industry group

24.29

Group distribution
NVDA
24.29
Max
24.29
Q3
11.44
Median
5.33
Q1
2.75
Min
0.19
Largest peers
ASML
1,447.30
TSM
88.29
NVDA
24.29
AVGO
17.11
AMD
11.59
MU
11.39
SKHY
6.75
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Where NVIDIA (NVDA) stands on P/B ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

NVIDIA (NVDA) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
MetricCurrent stock: NVDAIndustry group median
P/E Ratio (TTM)29.1645.74
P/S Ratio (TTM)18.366.93
P/B Ratio (MRQ)24.295.33
Free Cash Flow Yield (TTM)0.75%0.96%