NVIDIA Corporation (NASDAQ: NVDA) - Financial Analysis

1. Company Overview

NVIDIA Corporation (NASDAQ: NVDA) is the dominant force behind modern graphics processing and accelerated computing. While gaming GPUs built the brand, the company now powers artificial intelligence, hyperscale data-centers, professional visualization, and emerging autonomous-vehicle platforms.

Key Business Segments

Segment	What It Does	Growth Drivers
Gaming	GeForce GPUs and software for PCs and consoles	Ongoing gamer-base expansion, e-sports, ray-tracing upgrades
Data-Centre & AI	Tensor-core GPUs, DGX servers, networking (Mellanox), and CUDA / AI software stacks	Cloud AI models, Gen-AI training & inference, LLM demand
Professional Visualization	RTX-powered workstations, Omniverse collaboration, digital-twin simulation	Industrial metaverse, CAD/CAE, media & entertainment
Automotive & Embedded	DRIVE Orin/Safety for ADAS, infotainment, robotics	EV adoption and autonomy roadmaps

Strategic Initiatives

• AI & Deep-Learning Leadership: record R&D spend ($12.9B FY-25) sustains CUDA lock-in and keeps rivals a node behind.
• Platform Ecosystem: Omniverse, cuLitho, and generative-AI foundry services turn silicon into recurring software revenue.
• Supply-Chain Expansion: multi-foundry strategy (TSMC + Samsung) and substrate capacity deals aim to ease persistent H100/B100 shortages.

2. Financial Performance

a. Revenue & Growth

NVIDIA doubled sales again thanks to runaway AI infrastructure demand; gaming recovered from an inventory glut, but the data-centre segment delivered the bulk of incremental dollars.

b. Profitability

Metric	Latest	Comment
Net Income (TTM)	$72.88B	More than 2× FY-24, reflecting powerful operating leverage
EPS (Diluted)	$2.94	Stock split (10-for-1 in 2024) lowers per-share optics but growth intact
Trailing PE	34.52	Near a three-year low despite record results
Forward PE	22.86	Street expects earnings cadence to remain steep
Margins	Gross 74.99% • Operating 62.42% • Profit 55.85%	Best-in-class for semis; software stack and mix-shift to data-centre underpin resilience

c. Cash Flow

Massive cash generation funds buybacks ($40.6B FY-25) and a token dividend while keeping $43.21B on hand for capacity pre-payments and strategic M&A.

3. Balance Sheet

Item	Value
Cash & Short-Term Investments	$43.21B
Total Debt	$10.27B
Net Cash	$32.94B ($1.35/share)
Shareholders' Equity	$79.33B
Book Value / Share	$3.24
Working Capital	$62.08B

Leverage remains minimal (Debt/Equity 0.13); the company could fully repay outstanding notes with one quarter of free cash flow.

4. Valuation

Multiple	Current	Forward / Notes
PE	34.52	Forward 22.86
PEG	0.62	Growth-adjusted valuation looks undemanding
PS	19.10	Forward 12.27
PB	31.32	Reflects high ROE
P/FCF	40.69	Premium but falling with FCF surge
Enterprise Multiples	EV/Sales 18.72 • EV/EBITDA 29.33 • EV/FCF 40.15

A sub-1 PEG and compressing forward multiples suggest the market is gradually pricing explosive earnings rather than further multiple expansion.

5. Market Performance

Metric	Figure
52-Week Range	$75.61 – $153.13
Last Close (Apr 18 '25)	$101.49
Y/Y Price Change	+16.0%
Beta (5 Y)	1.96
50-DMA / 200-DMA	$118.05 / $126.17
RSI (14-day)	41.68
Avg Vol (20-day)	333.5M
Short Interest	234.4M (0.96% float)

Shares corrected 34% from the late-'24 high amid profit-taking and supply-concern headlines, but muted short interest signals limited bearish conviction.

6. Financial Health & Risks

a. Liquidity

Cash pile comfortably covers inventories and cap-ex ramp-ups.

b. Leverage

Near-debt-free balance sheet insulates NVDA from rate-cycle shocks.

c. Efficiency & Returns

Return metrics dwarf industry averages, validating premium multiples.

d. Key Risks

Risk	Details
Valuation Compression	Any slowdown in AI orders could trigger multiple contraction from still-elevated PE/PS levels.
Supply Constraints	Substrate and HBM shortages cap shipment upside and invite competitor inroads.
Geopolitical / Export Controls	Stricter U.S.–China chip rules could curtail data-centre growth in a key region.
Technological Disruption	Custom accelerators (e.g., Google TPU, Apple Silicon) and emerging RISC-V GPUs target NVDA's moat.

7. Conclusion

Final Note

NVIDIA is rewriting semiconductor economics as AI demand reshapes global computing. Financial power, technical leadership, and ecosystem lock-in argue for sustained outperformance, yet investors must balance growth euphoria against supply bottlenecks and policy uncertainty. Long-term believers may view pullbacks as opportunities, while short-horizon traders should prepare for continued volatility.