NVDA fundamental analysis

Nvidia Corporation (NVDA) demonstrates robust fundamental strength with impressive growth rates in revenue, net income, and diluted EPS, alongside strong profitability and cash flow.

1. **Strong Financial Growth**:
- Nvidia's revenue grew by 69.18% year-over-year, reaching $44.06 billion, reflecting significant market expansion and operational efficiency.
- Net income increased by 26.17% to $18.78 billion, and diluted EPS grew by 26.67%, indicating improved profitability and earnings power.

|code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code|
|---|---|---|---|---|---|---|---|
|NVDA|NVDA.O|Nvidia|2025 Q2|168.24499030381384|122.40319834160064|168.00000000000003|185|
|NVDA|NVDA.O|Nvidia|2025 Q3|108.90403548631397|93.6092715231788|110.8108108108108|185|
|NVDA|NVDA.O|Nvidia|2025 Q4|79.82091982091983|77.9441704745962|81.63265306122449|185|
|NVDA|NVDA.O|Nvidia|2026 Q1|26.167596263691955|69.18292121025956|26.66666666666667|185|

2. **Profitability and Cash Flow**:
- Nvidia's gross margins are exceptionally high at 75%, underscoring its pricing power and operational efficiency.
- The company's free cash flow is substantial at $26.19 billion, providing financial flexibility for investments and shareholder returns.

|code|Ticker|Name|Date|Free Cash Flow|Investing Cash Flow|Operating Cash Flow|Financing Cash Flow|market_code|
|---|---|---|---|---|---|---|---|---|
|NVDA|NVDA.O|Nvidia|2024 Q3|1.0256900344E10|-3.169E9|7.333E9|-4.527E9|185|
|NVDA|NVDA.O|Nvidia|2024 Q4|1.2459086045E10|-6.109E9|1.1499E10|-3.629E9|185|
|NVDA|NVDA.O|Nvidia|2025 Q1|-6.215056504E9|-5.693E9|1.5345E10|-9.345E9|185|
|NVDA|NVDA.O|Nvidia|2025 Q2|3.191129265E9|-3.185E9|1.4489E10|-1.032E10|185|

3. **Valuation Metrics**:
- Nvidia's valuation metrics are elevated, with a P/E ratio of 57.35, a P/S ratio of 29.65, and a P/B ratio of 52.51, suggesting that the stock may be overvalued by some investors.

|code|Ticker|Name|Date|P/E(TTM)|P/S|Price to Book Ratio|market_code|
|---|---|---|---|---|---|---|---|
|NVDA|NVDA.O|Nvidia|20240819|74.959738|28.466764139505027|6.507671645435676|185|
|NVDA|NVDA.O|Nvidia|20240820|73.374052|27.864582590400115|6.370009360628383|185|
|NVDA|NVDA.O|Nvidia|20240821|74.094818|28.138301476356894|6.43258312644988|185|
|NVDA|NVDA.O|Nvidia|20240822|71.350139|27.095979958633478|6.19430222620162|185|
|NVDA|NVDA.O|Nvidia|20240823|74.499286|28.291902325083804|6.476134467461642|185|
|NVDA|NVDA.O|Nvidia|20240826|72.823527|27.655514941872905|6.330462740629197|185|
|NVDA|NVDA.O|Nvidia|20240827|73.883113|28.057904215105914|6.42257132391844|185|
|NVDA|NVDA.O|Nvidia|20240828|72.334044|27.46962859282505|52.9809532816342|185|
|NVDA|NVDA.O|Nvidia|20240829|67.71563|25.71573621710292|49.598203139776814|185|
|NVDA|NVDA.O|Nvidia|20240830|68.740664|26.10500410099137|50.34898808397957|185|

4. **Stock Split and Market Position**:
- Nvidia executed a 10-for-1 stock split in June 2024 to boost retail investor access and liquidity, post-split the stock rose significantly.
- The company's 2025 revenue hit $114.8 billion (88% from data centers), with 114% YoY growth and 75% gross margins, underscoring its AI-driven dominance.
5. **Investment and Strategic Partnerships**:
- Nvidia's investment in CoreWeave demonstrates its strategic move to strengthen partnerships in AI infrastructure ecosystems.
- The company's AI-powered drone, the CobraJet, showcases its innovation in autonomous systems and defense solutions.
6. **Market Position and Growth Prospects**:
- Nvidia's AI chip dominance is strategic, with significant investments in AI infrastructure and ecosystem partners.
- The company's Blackwell GB200 AI inference solution demonstrates a significant competitive advantage with 77.6% profit margins.
7. **Risk Factors**:
- External risks include U.S.-China trade tensions and export charges, which could impact sales to key market China.
- The company's high valuation and speculative stock split timing suggest caution for investors.

In conclusion, Nvidia's strong fundamental growth, coupled with its strategic investments and market leadership, positions it well for continued success in the AI and semiconductor industries. However, the high valuation and external risks suggest a cautious approach for investors.