MSFT vs. NVDA: Microsoft vs. NVIDIA Stock Comparison

October 3, 2026

How do Microsoft (MSFT) and NVIDIA (NVDA) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Microsoft (MSFT) and NVIDIA (NVDA) share the Information Technology sector but sit in different industry groups — MSFT in Software & Services and NVDA in Semiconductors & Semiconductor Equipment.

Company profile comparison for Microsoft (MSFT) and NVIDIA (NVDA)
Profile Item	MSFT	NVDA
Name	Microsoft Corporation Common Stock	NVIDIA Corporation
Country/Region	United States	United States
GICS Sector	Information Technology	Information Technology
GICS Industry Group	Software & Services	Semiconductors & Semiconductor Equipment
GICS Industry	Software	Semiconductors & Semiconductor Equipment
GICS Sub-Industry	Systems Software	Semiconductors
Market Capitalization	3,842.94 billion USD	5,649.19 billion USD
Currency	USD	USD
Exchange	Nasdaq	Nasdaq
Listing Date	March 13, 1986	January 22, 1999
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

MSFT

NVDA

GSPC

Microsoft (MSFT) vs. NVIDIA (NVDA), with S&P 500 (GSPC) for reference: 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 Microsoft (MSFT) and NVIDIA (NVDA). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Microsoft (MSFT) and NVIDIA (NVDA). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Microsoft (MSFT) and NVIDIA (NVDA)
Metric	MSFT	NVDA
Total Return (1Y)	1.17%	24.15%
Total Return (3Y, Annualized)	18.07%	73.69%
Total Return (5Y, Annualized)	13.28%	62.49%

Risk Profile

Drawdown History

MSFT

NVDA

GSPC

Microsoft (MSFT) vs. NVIDIA (NVDA), with S&P 500 (GSPC) for reference: 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 Microsoft (MSFT) and NVIDIA (NVDA). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

NVIDIA (NVDA) carries a highly aggressive beta of 2.19, indicating much higher sensitivity to broad-market moves, whereas Microsoft (MSFT) is closer to market-like at 1.05 — a noticeable difference in market-sensitivity profile.

Risk profile metrics for Microsoft (MSFT) and NVIDIA (NVDA)
Metric	MSFT	NVDA
Volatility (1Y, Annualized)	32.76%	37.72%
Beta (5Y)	1.05	2.19
Max Drawdown (5Y)	-37.15%	-66.34%
Avg. Volume (3M)	28.46M	122.92M

Risk-Adjusted Performance

Risk-Return Positioning

MSFT and NVDA are plotted by 1-year volatility (risk) and 1-year return. Each dashed Capital Allocation Line uses that stock's own industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Microsoft (MSFT) and NVIDIA (NVDA)
Metric	MSFT	NVDA
Sharpe Ratio (1Y)	-0.10	0.52
Sortino Ratio (1Y)	-0.15	0.78

Profitability

ROE (TTM)

Both companies show strong equity returns, but NVIDIA (NVDA) at 117.21% is the standout with ROE above its industry range; Microsoft (MSFT) at 34.04% also sits in the top quartile.

MSFT

Software & Services industry group

34.04%

Max: 62.27%
MSFT: 34.04%
Q3: 17.80%
Median: 5.22%
Q1: -14.31%
Min: -59.77%

NVDA

Semiconductors & Semiconductor Equipment industry group

117.21%

NVDA: 117.21%
Max: 44.25%
Q3: 19.80%
Median: 8.89%
Q1: -2.59%
Min: -21.32%

Microsoft (MSFT) vs. NVIDIA (NVDA): A comparison of their ROE against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

Net Margin (TTM)

NVIDIA (NVDA) at 63.66% keeps the most of each sales dollar — above its industry’s net margin range — and Microsoft (MSFT) at 40.31% also retains a top-quartile share.

MSFT

Software & Services industry group

40.31%

Max: 41.43%
MSFT: 40.31%
Q3: 14.59%
Median: 3.69%
Q1: -6.16%
Min: -35.38%

NVDA

Semiconductors & Semiconductor Equipment industry group

63.66%

NVDA: 63.66%
Max: 49.92%
Q3: 22.56%
Median: 9.63%
Q1: 0.00%
Min: -20.29%

Microsoft (MSFT) vs. NVIDIA (NVDA): A comparison of their net margin against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

Operating Margin (TTM)

NVIDIA (NVDA) at 66.24% shows unusually strong operating efficiency — above its industry’s operating margin range — and Microsoft (MSFT) at 45.11% also operates in the top quartile.

MSFT

Software & Services industry group

45.11%

Max: 47.12%
MSFT: 45.11%
Q3: 15.20%
Median: 4.73%
Q1: -7.53%
Min: -39.13%

NVDA

Semiconductors & Semiconductor Equipment industry group

66.24%

NVDA: 66.24%
Max: 54.31%
Q3: 23.34%
Median: 13.33%
Q1: 0.62%
Min: -31.62%

Microsoft (MSFT) vs. NVIDIA (NVDA): A comparison of their operating margin against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

Profitability Metrics

Profitability metrics for Microsoft (MSFT) and NVIDIA (NVDA)
Metric	MSFT	NVDA
ROE (TTM)	34.04%	117.21%
ROA (TTM)	14.09%	53.57%
Net Margin (TTM)	40.31%	63.66%
Operating Margin (TTM)	45.11%	66.24%
Gross Margin (TTM)	67.94%	74.67%

Growth

Revenue Growth

NVIDIA (NVDA) at 65.47% clears its industry range for revenue growth, far stronger top-line momentum than Microsoft (MSFT) at 17.79%, which is closer to a typical peer reading.

Microsoft (MSFT) vs. NVIDIA (NVDA): A comparison of their Revenue Growth across different time periods.

EPS Growth

NVIDIA (NVDA) at 66.67% sits in the top EPS growth quartile, while Microsoft (MSFT) at 31.60% is closer to the peer norm — faster per-share earnings growth for NVDA.

Microsoft (MSFT) vs. NVIDIA (NVDA): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Microsoft (MSFT) and NVIDIA (NVDA)
Metric	MSFT	NVDA
Revenue Growth (YoY)	17.79%	65.47%
Revenue Growth (3Y CAGR)	16.12%	100.05%
EPS Growth (YoY)	31.60%	66.67%
EPS Growth (3Y CAGR)	22.86%	204.24%

Financial Strength

Current Ratio (MRQ)

Both Microsoft (MSFT) at 1.23 and NVIDIA (NVDA) at 4.59 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity relative to peers.

MSFT

Software & Services industry group

1.23

Max: 5.11
Q3: 2.75
Median: 1.64
MSFT: 1.23
Q1: 1.03
Min: 0.03

NVDA

Semiconductors & Semiconductor Equipment industry group

4.59

Max: 9.75
Q3: 5.41
NVDA: 4.59
Median: 3.44
Q1: 2.34
Min: 1.03

Microsoft (MSFT) vs. NVIDIA (NVDA): A comparison of their current ratio against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

Debt / Equity (MRQ)

Both Microsoft (MSFT) at 0.29 and NVIDIA (NVDA) at 0.17 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

MSFT

Software & Services industry group

0.29

Max: 2.52
Q3: 1.10
Median: 0.36
MSFT: 0.29
Q1: 0.06
Min: 0.00

NVDA

Semiconductors & Semiconductor Equipment industry group

0.17

Max: 1.44
Q3: 0.65
Median: 0.17
NVDA: 0.17
Q1: 0.04
Min: 0.00

Microsoft (MSFT) vs. NVIDIA (NVDA): A comparison of their debt-to-equity ratio against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

Financial Strength Metrics

Financial strength metrics for Microsoft (MSFT) and NVIDIA (NVDA)
Metric	MSFT	NVDA
Current Ratio (MRQ)	1.23	4.59
Debt / Equity (MRQ)	0.29	0.17
Net Debt / EBITDA	0.27	-0.12

Dividends

Dividend Yield (TTM)

NVIDIA (NVDA) at 0.12% pays an industry-typical yield; Microsoft (MSFT) at 0.71% is above its entire peer range — the higher number, but one that calls for a look at payout sustainability before treating it as an advantage.

MSFT

Software & Services industry group

0.71%

MSFT: 0.71%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

NVDA

Semiconductors & Semiconductor Equipment industry group

0.12%

Max: 0.76%
Q3: 0.31%
NVDA: 0.12%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Microsoft (MSFT) vs. NVIDIA (NVDA): A comparison of their dividend yield against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

Dividend Payout Ratio (TTM)

NVIDIA (NVDA) at 3.54% keeps its payout in the industry’s typical band, while Microsoft (MSFT) at 19.83% pays out more than any of its peers — the most stretched cover in its group.

MSFT

Software & Services industry group

19.83%

MSFT: 19.83%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

NVDA

Semiconductors & Semiconductor Equipment industry group

3.54%

Max: 43.44%
Q3: 18.06%
NVDA: 3.54%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Microsoft (MSFT) vs. NVIDIA (NVDA): A comparison of their payout ratio against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

Dividend Metrics

Dividend metrics for Microsoft (MSFT) and NVIDIA (NVDA)
Metric	MSFT	NVDA
Dividend Yield (TTM)	0.71%	0.12%
Dividend Payout Ratio (TTM)	19.83%	3.54%

Valuation

P/E Ratio (TTM)

NVIDIA (NVDA) at 29.17 sits in the cheaper P/E ratio quartile, while Microsoft (MSFT) at 28.58 is closer to its industry’s usual earnings multiple — a discount for NVDA, though growth and earnings durability still matter.

MSFT

Software & Services industry group

28.58

Max: 118.64
Q3: 59.01
Median: 30.61
MSFT: 28.58
Q1: 16.60
Min: 0.34

NVDA

Semiconductors & Semiconductor Equipment industry group

29.17

Max: 175.17
Q3: 100.69
Median: 50.89
Q1: 34.58
NVDA: 29.17
Min: 10.61

Microsoft (MSFT) vs. NVIDIA (NVDA): A comparison of their P/E ratio against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

P/S Ratio (TTM)

NVIDIA (NVDA) at 18.65 is priced about in line with its industry on P/S ratio, while Microsoft (MSFT) at 11.58 sits in the pricier quartile — MSFT costs more per dollar of sales.

MSFT

Software & Services industry group

11.58

Max: 19.63
MSFT: 11.58
Q3: 9.47
Median: 4.34
Q1: 2.29
Min: 0.02

NVDA

Semiconductors & Semiconductor Equipment industry group

18.65

Max: 29.23
NVDA: 18.65
Q3: 18.65
Median: 7.79
Q1: 3.33
Min: 0.01

Microsoft (MSFT) vs. NVIDIA (NVDA): A comparison of their P/S ratio against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

P/B Ratio (MRQ)

Microsoft (MSFT) at 8.69 is valued about in line with its industry on P/B ratio, while NVIDIA (NVDA) at 24.67 carries an above-peer premium to book — NVDA is pricier on assets.

MSFT

Software & Services industry group

8.69

Max: 19.52
Q3: 9.07
MSFT: 8.69
Median: 4.28
Q1: 2.04
Min: -3.49

NVDA

Semiconductors & Semiconductor Equipment industry group

24.67

Max: 25.01
NVDA: 24.67
Q3: 13.09
Median: 6.24
Q1: 3.12
Min: 0.17

Microsoft (MSFT) vs. NVIDIA (NVDA): A comparison of their P/B ratio against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

Valuation Metrics

Valuation metrics for Microsoft (MSFT) and NVIDIA (NVDA)
Metric	MSFT	NVDA
P/E Ratio (TTM)	28.58	29.17
P/S Ratio (TTM)	11.58	18.65
P/B Ratio (MRQ)	8.69	24.67
Free Cash Flow Yield (TTM)	0.43%	0.74%