Seek Returns

MSFT vs. NVDA: Microsoft vs. NVIDIA Stock Comparison

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 ItemMSFTNVDA
NameMicrosoft Corp.NVIDIA Corporation
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSemiconductors & Semiconductor Equipment
GICS IndustrySoftwareSemiconductors & Semiconductor Equipment
GICS Sub-IndustrySystems SoftwareSemiconductors
Market Capitalization2,872.87 billion USD4,736.42 billion USD
CurrencyUSDUSD
ExchangeNasdaqNasdaq
Listing DateMarch 13, 1986January 22, 1999
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

MSFT
NVDA
GSPC
Loading price history…
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

Loading price history…
Trailing total returns for Microsoft (MSFT) and NVIDIA (NVDA). Returns over one year are annualized.

Calendar-Year Returns

Loading price history…
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)
MetricMSFTNVDA
Total Return (1Y)-21.85%22.75%
Total Return (3Y, Annualized)5.07%66.89%
Total Return (5Y, Annualized)7.73%56.77%

Risk Profile

Drawdown History

MSFT
NVDA
GSPC
Loading price history…
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

Loading price history…
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 2.22, indicating much higher sensitivity to broad-market moves, whereas Microsoft (MSFT) is closer to market-like at 1.13 — a noticeable difference in market-sensitivity profile.

Risk profile metrics for Microsoft (MSFT) and NVIDIA (NVDA)
MetricMSFTNVDA
Volatility (1Y, Annualized)27.19%35.27%
Beta (5Y)1.132.22
Max Drawdown (5Y)-37.15%-66.34%
Avg. Volume (3M)39.75M158.16M

Risk-Adjusted Performance

Risk-Return Positioning

Loading chart…
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)
MetricMSFTNVDA
Sharpe Ratio (1Y)-0.950.53
Sortino Ratio (1Y)-1.260.79

Profitability

ROE (TTM)

Both companies show strong equity returns, but NVIDIA (NVDA) at 114.29% is the standout with ROE above its industry range; Microsoft (MSFT) at 34.01% also sits in the top quartile.

MSFT

Software & Services industry group

34.01%

Max
53.38%
MSFT
34.01%
Q3
16.58%
Median
5.38%
Q1
-13.49%
Min
-58.43%

NVDA

Semiconductors & Semiconductor Equipment industry group

114.29%

NVDA
114.29%
Max
39.69%
Q3
17.02%
Median
6.75%
Q1
-4.42%
Min
-35.15%
Loading chart…
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 62.97% keeps the most of each sales dollar — above its industry’s net margin range — and Microsoft (MSFT) at 39.34% also retains a top-quartile share.

MSFT

Software & Services industry group

39.34%

Max
44.20%
MSFT
39.34%
Q3
14.93%
Median
3.51%
Q1
-5.83%
Min
-34.99%

NVDA

Semiconductors & Semiconductor Equipment industry group

62.97%

NVDA
62.97%
Max
57.72%
Q3
21.04%
Median
7.16%
Q1
-3.57%
Min
-32.92%
Loading chart…
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 65.60% shows unusually strong operating efficiency — above its industry’s operating margin range — and Microsoft (MSFT) at 46.33% also operates in the top quartile.

MSFT

Software & Services industry group

46.33%

Max
60.45%
MSFT
46.33%
Q3
16.51%
Median
4.74%
Q1
-12.92%
Min
-53.94%

NVDA

Semiconductors & Semiconductor Equipment industry group

65.60%

NVDA
65.60%
Max
61.85%
Q3
21.10%
Median
10.10%
Q1
-7.89%
Min
-46.64%
Loading chart…
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)
MetricMSFTNVDA
ROE (TTM)34.01%114.29%
ROA (TTM)14.81%52.73%
Net Margin (TTM)39.34%62.97%
Operating Margin (TTM)46.33%65.60%
Gross Margin (TTM)68.31%74.15%

Growth

Revenue Growth

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

Revenue Growth Metrics

Revenue growth metrics for Microsoft (MSFT) and NVIDIA (NVDA)
MetricMSFTNVDA
Revenue Growth (YoY)14.93%65.47%
Revenue Growth (3Y CAGR)12.42%100.05%

EPS Growth

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

EPS Growth Metrics

EPS growth metrics for Microsoft (MSFT) and NVIDIA (NVDA)
MetricMSFTNVDA
EPS Growth (YoY)15.59%66.67%
EPS Growth (3Y CAGR)12.23%204.24%

Financial Strength

Current Ratio (MRQ)

Both Microsoft (MSFT) at 1.28 and NVIDIA (NVDA) at 3.44 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity relative to peers.

MSFT

Software & Services industry group

1.28

Max
5.55
Q3
2.88
Median
1.71
MSFT
1.28
Q1
1.06
Min
0.03

NVDA

Semiconductors & Semiconductor Equipment industry group

3.44

Max
11.30
Q3
6.01
NVDA
3.44
Median
3.31
Q1
2.40
Min
0.51
Loading chart…
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 0.30 and NVIDIA (NVDA) at 0.07 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

MSFT

Software & Services industry group

0.30

Max
2.31
Q3
1.06
Median
0.31
MSFT
0.30
Q1
0.06
Min
0.00

NVDA

Semiconductors & Semiconductor Equipment industry group

0.07

Max
1.44
Q3
0.63
Median
0.23
NVDA
0.07
Q1
0.05
Min
0.00
Loading chart…
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)
MetricMSFTNVDA
Current Ratio (MRQ)1.283.44
Debt / Equity (MRQ)0.300.07
Net Debt / EBITDA0.26-0.24

Dividends

Dividend Yield (TTM)

NVIDIA (NVDA) at 0.02% pays an industry-typical yield; Microsoft (MSFT) at 0.91% 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

0.91%

MSFT
0.91%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

NVDA

Semiconductors & Semiconductor Equipment industry group

0.02%

Max
0.53%
Q3
0.26%
NVDA
0.02%
Median
0.00%
Q1
0.00%
Min
0.00%
Loading chart…
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 0.61% keeps its payout in the industry’s typical band, while Microsoft (MSFT) at 20.73% pays out more than any of its peers — the most stretched cover in its group.

MSFT

Software & Services industry group

20.73%

MSFT
20.73%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

NVDA

Semiconductors & Semiconductor Equipment industry group

0.61%

Max
47.82%
Q3
20.31%
NVDA
0.61%
Median
0.00%
Q1
0.00%
Min
0.00%
Loading chart…
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)
MetricMSFTNVDA
Dividend Yield (TTM)0.91%0.02%
Dividend Payout Ratio (TTM)20.73%0.61%

Valuation

P/E Ratio (TTM)

NVIDIA (NVDA) at 29.95 sits in the cheaper P/E ratio quartile, while Microsoft (MSFT) at 23.03 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

23.03

Max
117.78
Q3
62.65
Median
31.29
MSFT
23.03
Q1
16.64
Min
0.43

NVDA

Semiconductors & Semiconductor Equipment industry group

29.95

Max
243.53
Q3
136.40
Median
67.69
Q1
43.47
NVDA
29.95
Min
10.77
Loading chart…
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)

On P/S ratio, both Microsoft (MSFT) at 9.03 and NVIDIA (NVDA) at 18.68 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

MSFT

Software & Services industry group

9.03

Max
18.75
Q3
9.31
MSFT
9.03
Median
4.30
Q1
2.22
Min
0.02

NVDA

Semiconductors & Semiconductor Equipment industry group

18.68

Max
37.09
Q3
19.83
NVDA
18.68
Median
10.07
Q1
4.18
Min
0.01
Loading chart…
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 6.93 is valued about in line with its industry on P/B ratio, while NVIDIA (NVDA) at 24.23 carries an above-peer premium to book — NVDA is pricier on assets.

MSFT

Software & Services industry group

6.93

Max
18.69
Q3
8.74
MSFT
6.93
Median
3.99
Q1
2.05
Min
-5.53

NVDA

Semiconductors & Semiconductor Equipment industry group

24.23

Max
25.39
NVDA
24.23
Q3
13.30
Median
7.38
Q1
3.64
Min
0.19
Loading chart…
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)
MetricMSFTNVDA
P/E Ratio (TTM)23.0329.95
P/S Ratio (TTM)9.0318.68
P/B Ratio (MRQ)6.9324.23
Free Cash Flow Yield (TTM)1.29%0.98%