Overview
Nvidia Corporation is an American multinational technology company headquartered in Santa Clara, California. The company develops graphics processing units (GPUs), systems on chips (SoCs), and application programming interfaces (APIs) for data science, high-performance computing, artificial intelligence (AI), and mobile and automotive applications. Founded in 1993 by Jensen Huang, Chris Malachowsky, and Curtis Priem, Nvidia has been described as a Big Tech company and is among the largest companies by market capitalization.
Ben Graham Analysis
Stock passes only 3 of 7 Graham criteria. Limited margin of safety. Requires deep conviction or special situation rationale.
⚠ Risk Factors
- Earnings yield not sufficiently above bond yield
- Stock price exceeds Graham Number — may be overvalued
- High P/E ratio suggests premium valuation
- Market cap exceeds Net Current Asset Value
About this analysis: Based on Benjamin Graham's margin of safety principles from The Intelligent Investor and Security Analysis. A positive margin of safety indicates the stock may be trading below its estimated intrinsic value.
Financial Health & Signals
Piotroski F-Score, Owner Earnings, Earnings Quality, and Shareholder Yield
Piotroski F-Score
Poor financial health signals. Proceed with caution.
Owner Earnings (2026)
Earnings Quality (2026)
Cash flow roughly in line with earnings — normal quality.
Shareholder Yield (2026)
Minimal direct cash return to shareholders.
Historical Valuation
Where the current valuation sits within its own 5-year range
How to read this: These gauges show where the current P/E and P/B ratios fall between their own 5-year low and high (0% = at the low, 100% = at the high). A position near the low end suggests the stock is historically cheap on that metric; near the high end suggests it's historically expensive. Compare with the company's growth trajectory to determine if the valuation is justified.
Reverse DCF Calculator
What growth rate is the market pricing in?
The market is pricing in very high growth. This leaves little margin of safety — any slowdown could trigger a significant repricing.
How to read this: A reverse DCF works backwards from the current stock price to reveal what annual FCF growth rate the market is implicitly assuming. Compare this implied rate against the company's historical growth and your own expectations — if the market expects more growth than you think is realistic, the stock may be overvalued.
ROIC vs. WACC
Return on Invested Capital versus Weighted Average Cost of Capital
How to read this: ROIC measures how efficiently a company turns invested capital into profits. WACC is the minimum return investors demand. When ROIC consistently exceeds WACC, management is creating value — a hallmark of a durable competitive advantage (moat). A declining ROIC trending toward WACC may signal moat erosion.
Capital Allocation
How the company has deployed its cash over 5 years
How to read this: This chart shows how the company allocated capital each fiscal year across four categories. Companies that consistently invest in CapEx and return cash via dividends often signal durable competitive advantages. Heavy share buybacks at elevated valuations can destroy shareholder value.
7 Powers Analysis
Hamilton Helmer's strategic moat framework applied to NVIDIA Corporation (Semiconductors)
Operating margin moved from 37.3% to 60.4% over 4 years (+23.1pp).
Awaiting AI analysis
Requires non-financial data (user counts, engagement metrics) not available in SEC filings.
Awaiting AI analysis
Requires identifying a specific incumbent competitor for comparison — a qualitative judgment.
Awaiting AI analysis
Gross margin volatility 6.8pp (avg 68.5%) with 66.9% 5Y revenue growth.
Awaiting AI analysis
Gross margin 73.2% vs peers median 57% (1.28x). Inventory turnover 3.7x.
Awaiting AI analysis
Tangible ROA 65.7% vs peers median 14% (4.9x).
Awaiting AI analysis
Avg ROIC 50.2% vs WACC 17.4% (alpha +32.8pp, σ 26.7pp).
Awaiting AI analysis
How to read this: The 7 Powers framework (Hamilton Helmer) identifies seven empirical sources of lasting business value. Each power shows both a quantitative score (from financial data) and a qualitative score (from AI analysis). The combined signal per power takes the more conservative of the two. Network Effects and Counter-Positioning can only be assessed qualitatively. When AI analysis is available, the overall moat signal reflects all 7 powers combined.
Insider Transactions
Open-market purchases and sales by company insiders (past 12 months)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| 2026-09-21 | Timothy S. Teter | Sell | 4,499 | $223.75 |
| 2026-09-21 | Timothy S. Teter | Sell | 13,478 | $223.05 |
| 2026-09-21 | Timothy S. Teter | Sell | 12,483 | $222.19 |
| 2026-09-18 | Mark A. Stevens | Sell | 10,000 | $220.42 |
| 2026-09-18 | Mark A. Stevens | Sell | 1,356,000 | $219.72 |
How to read this: Insider buying on the open market is one of the strongest bullish signals — executives are spending their own money because they believe the stock is undervalued. Selling alone is less informative (insiders sell for many reasons), but heavy selling by multiple insiders can signal caution.