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Nvidia
(NASDAQ:NVDA)
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Rating:88Outperform
Price Target:
$274.00
▲(28.61% Upside)
Action:Reiterated
Date:09/06/26
The score is driven primarily by exceptional financial performance (outsized margins, strong cash flow, and solid balance sheet) and a generally constructive technical setup. Earnings call guidance supports continued strong demand and growth, though near-term margin pressure, higher OpEx, and supply constraints temper the outlook. Valuation is less supportive given the ~29 P/E and minimal dividend yield.
Positive Factors
Exceptional profitability and cash generation
NVIDIA’s exceptional margins and high conversion of earnings into free cash flow provide substantial internal funding for research, infrastructure, and shareholder returns. This financial strength improves resilience while supporting continued investment in its accelerated-computing platform over the next several quarters.
Negative Factors
Persistent supply constraints limit fulfilled demand
Supply constraints can prevent NVIDIA from converting strong customer demand into reported revenue, limiting near-term operating leverage and customer deployment speed. If bottlenecks persist through fiscal 2028, they may defer sales, complicate planning, and create execution pressure despite a large underlying opportunity.
Read all positive and negative factors
Positive Factors
Negative Factors
Exceptional profitability and cash generation
NVIDIA’s exceptional margins and high conversion of earnings into free cash flow provide substantial internal funding for research, infrastructure, and shareholder returns. This financial strength improves resilience while supporting continued investment in its accelerated-computing platform over the next several quarters.
Read all positive factors
Nvidia Key Performance Indicators (KPIs)
Any
Revenue by Geography
Splits sales across regions (U.S., China, EMEA, APAC) to show where Nvidia earns its money and how exposed it is to regional demand swings, currency moves, or trade and regulatory risks.
Splits sales across regions (U.S., China, EMEA, APAC) to show where Nvidia earns its money and how exposed it is to regional demand swings, currency moves, or trade and regulatory risks.
Data provided by:
The Fly
The FlyNvidia (NVDA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.55T
Dividend Yield0.12%
Average Volume (3M)130.50M
Price to Earnings (P/E)29.0
Beta (1Y)1.97
Revenue Growth83.38%
EPS Growth124.42%
CountryUS
Employees42,000
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)7.95
Shares Outstanding24,100,000,000
10 Day Avg. Volume158,903,928
30 Day Avg. Volume130,496,399
Financial Highlights & Ratios
PEG Ratio0.57
Price to Book (P/B)28.88
Price to Sales (P/S)21.03
P/FCF Ratio46.98
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$325.23Price Target Upside52.65% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering29
EPS Forecast (FY)9.26
Revenue Forecast (FY)$408.36B
Nvidia Business Overview & Revenue Model
Company Description
NVIDIA Corporation stands as a prominent provider of advanced graphics, computational, and networking solutions, operating across the United States, Taiwan, China, and numerous international markets. Its Graphics division encompasses GeForce GPUs,...
How the Company Makes Money
NVIDIA primarily makes money by selling GPU-based computing products and related software and services. A major revenue stream comes from its Data Center business, where it sells GPUs and platform components used for AI and high-performance comput...
Nvidia Earnings Call Summary
Earnings Call Date:Aug 26, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Nov 25, 2026
Earnings Call Sentiment Positive
The call was strongly positive on demand, product ramps and strategic partnerships — record revenue ($96B), robust data center growth (+18% Q/Q), major customer commitments (AWS, OpenAI) and rapid Vera Rubin production. At the same time, significant near-term operational headwinds persist: supply constraints limiting fulfilled demand, sharp memory price inflation pressuring gross margins (guidance down to mid-low 70%s), rising operating expenses, and sizable capital commitments to AI labs that increase balance-sheet exposure. Overall the company emphasized strong secular tailwinds and execution confidence while acknowledging margin and supply bottlenecks in the near term.Positive Updates
Record Revenue, Operating Income and EPS
Total revenue of $96.0B in Q2 FY2027, more than doubled year-over-year (>100% YoY), with record operating income and EPS; company returned a record $26B to shareholders ($20B repurchases, $6B dividends).
Negative Updates
Supply Constraints Limiting Fulfilled Demand
Management states outlook is supply-constrained; supply expected to remain a bottleneck at least through the end of fiscal year '28 and company expects to fulfill ~70% of demand versus materially higher unconstrained demand (management cited demand growth ~100% in many segments).
Read all updates
Q2-2027 Updates
Positive
Negative
Record Revenue, Operating Income and EPS
Total revenue of $96.0B in Q2 FY2027, more than doubled year-over-year (>100% YoY), with record operating income and EPS; company returned a record $26B to shareholders ($20B repurchases, $6B dividends).
Read all positive updates
Company Guidance
NVIDIA guided third-quarter fiscal‑2027 revenue of $108 billion ±2% and said Vera Rubin will account for about 20% of data‑center sales in Q3, while forecasting fiscal‑2028 revenue growth of approximately 70% year‑over‑year (supply‑constrained). They expect Q3 GAAP and non‑GAAP gross margins of 74% ±50 basis points, with margins bottoming in Q4 at 71–72% and settling at 72–73% in fiscal‑2028 as price increases take effect; Q3 operating expenses are expected to be about $9.2 billion (GAAP) and $9.0 billion (non‑GAAP) and full‑year OpEx to grow in the low‑50s percent. Other guidance/metrics included a fiscal‑2027 effective tax rate of 16–18%, inventory of $32 billion, days sales outstanding of 60, and the company noted Q2 return of $26 billion to shareholders ($20 billion repurchases, $6 billion dividend of $0.25/share) and that memory cost inflation is pressuring margins.Nvidia Financial Statement Overview
Summary
Income Statement
98
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
90
Very Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 302.97B | 215.94B | 130.50B | 60.92B | 26.97B | 26.91B |
| Gross Profit | 226.24B | 153.46B | 97.86B | 44.30B | 15.36B | 17.48B |
| EBITDA | 233.67B | 144.55B | 86.14B | 35.58B | 5.99B | 11.35B |
| Net Income | 192.88B | 120.07B | 72.88B | 29.76B | 4.37B | 9.75B |
Balance Sheet | ||||||
| Total Assets | 320.27B | 206.80B | 111.60B | 65.73B | 41.18B | 44.19B |
| Cash, Cash Equivalents and Short-Term Investments | 99.37B | 62.56B | 43.21B | 25.98B | 13.30B | 21.21B |
| Total Debt | 38.86B | 11.41B | 10.27B | 11.06B | 12.03B | 11.83B |
| Total Liabilities | 91.29B | 49.51B | 32.27B | 22.75B | 19.08B | 17.57B |
| Stockholders Equity | 228.98B | 157.29B | 79.33B | 42.98B | 22.10B | 26.61B |
Cash Flow | ||||||
| Free Cash Flow | 127.01B | 96.68B | 60.85B | 27.02B | 3.81B | 8.13B |
| Operating Cash Flow | 134.36B | 102.72B | 64.09B | 28.09B | 5.64B | 9.11B |
| Investing Cash Flow | -75.01B | -52.23B | -20.42B | -10.57B | 7.38B | -9.83B |
| Financing Cash Flow | -48.55B | -48.47B | -42.36B | -13.63B | -11.62B | 1.86B |
Nvidia Technical Analysis
Positive
213.05
Price Trends
210.57
Positive
210.30
Positive
196.53
Positive
Market Momentum
3.83
Negative
60.39
Neutral
82.66
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NVDA, the sentiment is Positive. The current price of 213.05 is below the 20-day moving average (MA) of 220.08, above the 50-day MA of 210.57, and above the 200-day MA of 196.53, indicating a bullish trend. The MACD of 3.83 indicates Negative momentum. The RSI at 60.39 is Neutral, neither overbought nor oversold. The STOCH value of 82.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NVDA.
Nvidia Risk Analysis
Nvidia disclosed 24 risk factors in its most recent earnings report. Nvidia reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Nvidia Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
88 Outperform | $5.55T | 28.98 | 110.11% | 0.12% | 83.38% | 124.42% | |
79 Outperform | $196.03B | 73.32 | 16.22% | 0.11% | 30.62% | ― | |
78 Outperform | $1.70T | 44.40 | 43.91% | 0.71% | 48.69% | 99.97% | |
78 Outperform | $269.23B | 259.89 | 13.00% | ― | 25.12% | 48.03% | |
74 Outperform | $779.62B | 121.21 | 10.07% | ― | 39.54% | 125.82% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $503.38B | -45.40 | -10.76% | 2.63% | 7.47% | 55.56% |
* Technology Sector Average
NVDA
Nvidia
230.36
62.27
37.05%
AMD
Advanced Micro Devices
477.57
326.16
215.42%
AVGO
Broadcom
357.90
14.76
4.30%
INTC
Intel
95.80
71.32
291.34%
MRVL
Marvell
223.55
157.69
239.44%
ARM
ARM Holdings PLC ADR
252.09
112.95
81.18%
Nvidia Corporate Events
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
Nvidia to Acquire Open-Source AI Platform Hugging Face
Positive
Sep 3, 2026
On September 2, 2026, Nvidia agreed to acquire open-source AI platform provider Hugging Face, Inc. in a deal valued at about $11.9 billion, alongside an equity-based retention package of up to $1.0 billion for employees who join Nvidia. The transa...
Business Operations and StrategyPrivate Placements and Financing
NVIDIA Commits to Major AI Infrastructure Partnership in Ohio
Positive
Aug 17, 2026
On August 17, 2026, NVIDIA announced a multi-year partnership with SB Energy to secure land, power and shell capacity at the PORTS-Pike Technology Campus in Pike County, Ohio, where it will be the exclusive AI compute infrastructure provider. Unde...
Business Operations and StrategyExecutive/Board Changes
Nvidia names Nicholas Parker to lead field operations
Positive
Jul 2, 2026
On June 28, 2026, NVIDIA announced that Ajay K. Puri, its Executive Vice President of Worldwide Field Operations and a 21-year veteran of the company, intends to retire from his role once his successor begins, while remaining in a senior advisory ...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Nvidia Shareholders Back Board, Governance Changes at Meeting
Positive
Jun 30, 2026
At its June 24, 2026 annual meeting of stockholders, Nvidia shareholders re-elected all ten director nominees to serve until the 2027 meeting, approved on an advisory basis the compensation of named executive officers, and ratified Pricewaterhouse...
Business Operations and StrategyPrivate Placements and Financing
Nvidia Completes $25 Billion Multi-Tranche Debt Offering
Positive
Jun 18, 2026
On June 18, 2026, Nvidia completed a major multi-tranche debt offering totaling $25 billion, issuing notes maturing between 2028 and 2056 with coupons ranging from 4.250% to 5.625%. The transaction was conducted under the company’s shelf reg...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.