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Microsoft (MSFT) vs. Nvidia (NVDA)

This page compares Microsoft (MSFT) with Nvidia (NVDA) using historical performance, profitability, financial strength, growth, dividend, and valuation metrics.

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.

SymbolMSFTNVDA
Company NameMicrosoft CorporationNVIDIA Corporation
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSemiconductors & Semiconductor Equipment
GICS IndustrySoftwareSemiconductors & Semiconductor Equipment
GICS Sub-IndustrySystems SoftwareSemiconductors
Market Capitalization3,113.18 billion USD5,316.75 billion USD
CurrencyUSDUSD
ExchangeNasdaqGSNasdaqGS
Listing DateMarch 13, 1986January 22, 1999
Security TypeCommon StockCommon Stock

Historical Performance

Nvidia (NVDA) carries a highly aggressive beta of 2.26, indicating much higher sensitivity to broad-market moves, whereas Microsoft (MSFT) is closer to market-like at 1.09 — a noticeable difference in market-sensitivity profile.

MSFT
NVDA
Loading price history…
Microsoft (MSFT) vs. Nvidia (NVDA): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Historical Performance at a Glance

SymbolMSFTNVDA
5-Day Price Return-0.67%-2.58%
13-Week Price Return5.18%16.82%
26-Week Price Return-16.73%17.47%
52-Week Price Return-7.40%66.55%
Month-to-Date Return2.77%9.99%
Year-to-Date Return-13.34%17.70%
10-Day Avg. Volume34.00M164.33M
3-Month Avg. Volume36.41M171.75M
3-Month Volatility27.08%37.52%
Beta1.092.26

Profitability

Return on Equity (TTM)

Nvidia (NVDA) leads with Return on Equity (TTM) of 111.66%, above its industry benchmark range, while Microsoft (MSFT) at 33.13% also ranks strongly in the top quartile.

MSFT

Software & Services industry group

33.13%

Max
62.31%
Q3
20.29%
Median
7.31%
Q1
-8.50%
Min
-50.67%

NVDA

Semiconductors & Semiconductor Equipment industry group

111.66%

Max
44.68%
Q3
17.87%
Median
7.82%
Q1
-3.34%
Min
-32.99%
Microsoft (MSFT) vs. Nvidia (NVDA): A comparison of their Return on Equity (TTM) against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

Net Profit Margin (TTM)

Nvidia (NVDA) leads with Net Profit Margin (TTM) of 62.97%, above its industry benchmark range, while Microsoft (MSFT) at 39.34% also ranks strongly in the top quartile.

MSFT

Software & Services industry group

39.34%

Max
44.20%
Q3
16.48%
Median
8.18%
Q1
-3.67%
Min
-28.43%

NVDA

Semiconductors & Semiconductor Equipment industry group

62.97%

Max
47.00%
Q3
21.67%
Median
8.14%
Q1
-5.59%
Min
-44.72%
Microsoft (MSFT) vs. Nvidia (NVDA): A comparison of their Net Profit Margin (TTM) against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

Operating Profit Margin (TTM)

Both Microsoft (MSFT) at 46.75% and Nvidia (NVDA) at 64.02% rank in the top quartile for Operating Profit Margin (TTM) among industry peers, indicating both companies convert revenue into operating income more strongly than typical competitors.

MSFT

Software & Services industry group

46.75%

Max
46.75%
Q3
17.04%
Median
6.53%
Q1
-4.60%
Min
-34.31%

NVDA

Semiconductors & Semiconductor Equipment industry group

64.02%

Max
64.02%
Q3
24.88%
Median
9.09%
Q1
-2.77%
Min
-35.68%
Microsoft (MSFT) vs. Nvidia (NVDA): A comparison of their Operating Profit Margin (TTM) against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

Profitability at a Glance

SymbolMSFTNVDA
Return on Equity (TTM)33.13%111.66%
Return on Assets (TTM)19.15%83.11%
Net Profit Margin (TTM)39.34%62.97%
Operating Profit Margin (TTM)46.75%64.02%
Gross Profit Margin (TTM)68.31%74.15%

Financial Strength

Current Ratio (MRQ)

Both Microsoft (MSFT) at 1.28 and Nvidia (NVDA) at 3.44 carry Current Ratio (MRQ) within their industry mid-ranges, suggesting balanced short-term liquidity relative to peers.

MSFT

Software & Services industry group

1.28

Max
4.52
Q3
2.50
Median
1.64
Q1
1.13
Min
0.31

NVDA

Semiconductors & Semiconductor Equipment industry group

3.44

Max
9.20
Q3
5.14
Median
3.07
Q1
2.31
Min
1.02
Microsoft (MSFT) vs. Nvidia (NVDA): A comparison of their Current Ratio (MRQ) against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

Debt-to-Equity Ratio (MRQ)

Both Microsoft (MSFT) at 0.25 and Nvidia (NVDA) at 0.04 post Debt-to-Equity Ratio (MRQ) near their industry mid-ranges, so neither company stands out strongly from peers on leverage.

MSFT

Software & Services industry group

0.25

Max
2.69
Q3
1.27
Median
0.38
Q1
0.00
Min
0.00

NVDA

Semiconductors & Semiconductor Equipment industry group

0.04

Max
1.18
Q3
0.56
Median
0.19
Q1
0.00
Min
0.00
Microsoft (MSFT) vs. Nvidia (NVDA): A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

Interest Coverage Ratio (TTM)

Microsoft (MSFT) leads with Interest Coverage Ratio (TTM) of 891.80, above its industry benchmark range, while Nvidia (NVDA) at 75.66 also ranks strongly in the top quartile.

MSFT

Software & Services industry group

891.80

Max
45.58
Q3
11.44
Median
-0.40
Q1
-13.69
Min
-51.04

NVDA

Semiconductors & Semiconductor Equipment industry group

75.66

Max
95.50
Q3
44.75
Median
14.35
Q1
0.46
Min
-45.50
Microsoft (MSFT) vs. Nvidia (NVDA): A comparison of their Interest Coverage Ratio (TTM) against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

Financial Strength at a Glance

SymbolMSFTNVDA
Current Ratio (MRQ)1.283.44
Quick Ratio (MRQ)1.272.76
Debt-to-Equity Ratio (MRQ)0.250.04
Interest Coverage Ratio (TTM)891.8075.66

Growth

Revenue Growth

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

Revenue Growth at a Glance

SymbolMSFTNVDA
Revenue Growth (MRQ vs Prior YoY)18.30%85.23%
Revenue Growth (TTM vs Prior YoY)17.87%70.68%
3-Year Revenue CAGR12.42%100.05%
5-Year Revenue CAGR14.52%66.90%

EPS Growth

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

EPS Growth at a Glance

SymbolMSFTNVDA
EPS Growth (MRQ vs Prior YoY)23.32%213.42%
EPS Growth (TTM vs Prior YoY)29.75%110.34%
3-Year EPS CAGR12.24%204.08%
5-Year EPS CAGR18.80%95.27%

Dividend

Dividend Yield (TTM)

Both Microsoft (MSFT) at 0.83% and Nvidia (NVDA) at 0.02% report Dividend Yield (TTM) near their industry mid-ranges, so neither company stands out strongly from peers on cash yield relative to share price.

MSFT

Software & Services industry group

0.83%

Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

NVDA

Semiconductors & Semiconductor Equipment industry group

0.02%

Max
1.06%
Q3
0.43%
Median
0.00%
Q1
0.00%
Min
0.00%
Microsoft (MSFT) vs. Nvidia (NVDA): A comparison of their Dividend Yield (TTM) against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

Dividend Payout Ratio (TTM)

Nvidia (NVDA) at 0.61% maintains Dividend Payout Ratio (TTM) around its industry median — a balanced dividend policy. Microsoft (MSFT) at 20.65% sits outside the typical mid-range, leaning toward more retention or more distribution than the industry median.

MSFT

Software & Services industry group

20.65%

Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

NVDA

Semiconductors & Semiconductor Equipment industry group

0.61%

Max
45.87%
Q3
21.77%
Median
0.00%
Q1
0.00%
Min
0.00%
Microsoft (MSFT) vs. Nvidia (NVDA): A comparison of their Dividend Payout Ratio (TTM) against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

Dividend at a Glance

SymbolMSFTNVDA
Dividend Yield (TTM)0.83%0.02%
Dividend Payout Ratio (TTM)20.65%0.61%

Valuation

Price-to-Earnings Ratio (TTM)

Nvidia (NVDA) at 33.98 trades in the lower-multiple quartile for Price-to-Earnings Ratio (TTM), while Microsoft (MSFT) at 24.92 sits around the industry midpoint — NVDA has a lower trailing earnings multiple relative to peers, though the gap should be read alongside growth and earnings quality.

MSFT

Software & Services industry group

24.92

Max
102.57
Q3
62.64
Median
31.77
Q1
14.20
Min
0.35

NVDA

Semiconductors & Semiconductor Equipment industry group

33.98

Max
210.81
Q3
119.56
Median
61.47
Q1
39.21
Min
15.75
Microsoft (MSFT) vs. Nvidia (NVDA): A comparison of their Price-to-Earnings Ratio (TTM) against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

Price-to-Sales Ratio (TTM)

Both Microsoft (MSFT) at 9.80 and Nvidia (NVDA) at 21.39 trade in the higher-multiple quartile for Price-to-Sales Ratio (TTM) among industry peers, indicating higher trailing revenue multiples than typical peers.

MSFT

Software & Services industry group

9.80

Max
17.61
Q3
8.53
Median
4.13
Q1
2.23
Min
0.12

NVDA

Semiconductors & Semiconductor Equipment industry group

21.39

Max
33.40
Q3
18.97
Median
8.92
Q1
4.85
Min
0.15
Microsoft (MSFT) vs. Nvidia (NVDA): A comparison of their Price-to-Sales Ratio (TTM) against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

Price-to-Book Ratio (MRQ)

Microsoft (MSFT) at 6.63 hovers around the typical industry Price-to-Book Ratio (MRQ), while Nvidia (NVDA) at 26.93 sits above its industry benchmark range — an elevated book-value multiple for NVDA relative to peers.

MSFT

Software & Services industry group

6.63

Max
20.48
Q3
9.90
Median
4.69
Q1
2.39
Min
0.32

NVDA

Semiconductors & Semiconductor Equipment industry group

26.93

Max
15.23
Q3
7.79
Median
4.52
Q1
2.23
Min
0.33
Microsoft (MSFT) vs. Nvidia (NVDA): A comparison of their Price-to-Book Ratio (MRQ) against their respective Software & Services and Semiconductors & Semiconductor Equipment industry group benchmarks.

Valuation at a Glance

SymbolMSFTNVDA
Price-to-Earnings Ratio (TTM)24.9233.98
Price-to-Sales Ratio (TTM)9.8021.39
Price-to-Book Ratio (MRQ)6.6326.93
Price-to-Free Cash Flow Ratio (TTM)42.7945.54