NVDA
NVIDIA Corporation
Technology · Semiconductors · United States · Stock
Theme Exposure
Score Breakdown
Scored for Aggressive Growth profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- NVIDIA earned perfect scores on growth, profitability, and financial health, driven by 65.5% revenue growth, margins above 55%, and a debt-to-equity ratio of just 0.05, collectively anchoring a composite score of 84.9 out of 100.
- Four consecutive quarters of accelerating revenue, net income, and operating income contributed a strong momentum sub-score, reinforcing the model's designation of NVIDIA as a Strong Candidate with a Very Low risk rating.
- Assignment to the AI Infrastructure and Semiconductors macro themes aligns NVIDIA with two of the most prominent investment narratives, adding thematic relevance to the fundamental strength.
Why Not Higher
- The dividend payout ratio of just 0.8% of net income in FY2026 resulted in a mid-range dividend sub-score, as the model penalizes the very low yield relative to earnings despite the presence of a dividend program.
- The theme sub-score did not fully reflect NVIDIA's assignment to AI Infrastructure and Semiconductors under the model's current internal weighting methodology, limiting the composite score despite clear thematic relevance.
Data Confidence
10 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2025's $130,497,000,000 to FY2026's $215,938,000,000 (+65.5%), net income grew from FY2025's $72,880,000,000 to FY2026's $120,067,000,000 (+64.7%), and diluted EPS grew from FY2025's $2.94 to FY2026's $4.90 (+66.7%).
The model rewarded the simultaneous acceleration of revenue, net income, and earnings per share at rates exceeding 64% year-over-year, reflecting broad-based top- and bottom-line expansion that the model's growth rubric treats as exceptional.
In FY2026, NVIDIA posted a net margin of 55.6%, an operating margin of 60.4%, and a return on assets of 58.1%.
The model rewarded these figures because margins above 55% and a return on assets above 58% indicate that the company converts a majority of each revenue dollar into profit and generates exceptional returns on its asset base, placing it at the top of the model's profitability scale.
In FY2026, NVIDIA carried a debt-to-equity ratio of 0.05 against total assets of $206,803,000,000.
A debt-to-equity ratio of 0.05 signals that the company is almost entirely equity-financed, and the scale of its asset base confirms substantial financial capacity, both of which the model treats as indicators of strong balance-sheet health.
Over the last four reported quarters, revenue rose sequentially from $46,743,000,000 in 2026Q2 to $57,006,000,000 in 2026Q3, $68,127,000,000 in 2026Q4, and $81,615,000,000 in 2027Q1; net income rose from $26,422,000,000 to $31,910,000,000, $42,960,000,000, and $58,321,000,000 over the same periods; and operating income rose from $28,440,000,000 to $36,010,000,000, $44,299,000,000, and $53,536,000,000.
The model recognized a consistent and accelerating sequential expansion across all three income metrics for four consecutive quarters, which is characteristic of strong positive momentum; the score of 18 rather than a perfect 20 suggests the model's methodology applied a modest discount despite the clear upward trajectory.
NVIDIA's dividend payout ratio in FY2026 was 0.8% of net income.
A payout ratio of 0.8% indicates the company returns only a minimal fraction of earnings to shareholders as dividends, which the model treats as a limited dividend contribution; the mid-range score reflects the presence of a dividend program while penalizing its very low yield relative to earnings.
NVIDIA is assigned to the macro themes of AI Infrastructure and Semiconductors.
Although NVIDIA is directly assigned to two high-profile macro themes, the assignment did not fully translate into a high theme sub-score under the model's current methodology; the score reflects the model's internal weighting rather than any absence of thematic relevance.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
NVIDIA delivered exceptional year-over-year growth in FY2026, with revenue rising 65.5% to $215,938,000,000 and net income climbing 64.7% to $120,067,000,000, while diluted EPS expanded 66.7% to $4.90. The company's profitability profile is equally striking, with a net margin of 55.6%, an operating margin of 60.4%, and a return on assets of 58.1%, placing it at the top of the model's profitability scale. A debt-to-equity ratio of just 0.05 against total assets of $206,803,000,000 underscores a nearly all-equity capital structure with substantial financial capacity. Sequential quarterly momentum has been consistently accelerating across revenue, net income, and operating income, reinforcing the strength of the composite score of 84.9 out of 100 and a Very Low risk rating.
Plain English
NVIDIA is growing incredibly fast — revenue jumped over 65% in a single year — while keeping more than half of every dollar it earns as profit, and it carries almost no debt, making it one of the strongest-looking companies in this model's analysis.
Bull Case vs. Bear Case
Bull Case
- Revenue, net income, and diluted EPS all grew more than 64% year-over-year in FY2026, reflecting broad-based top- and bottom-line expansion that the model treats as exceptional.
- With a net margin of 55.6%, an operating margin of 60.4%, and a return on assets of 58.1%, NVIDIA converts a majority of each revenue dollar into profit and generates outstanding returns on its asset base.
- Sequential quarterly revenue accelerated from $46,743,000,000 in 2026Q2 to $81,615,000,000 in 2027Q1, with net income and operating income rising in lockstep, demonstrating sustained and accelerating business momentum.
Bear Case
- NVIDIA's dividend payout ratio stands at just 0.8% of net income in FY2026, meaning the company returns only a minimal fraction of its substantial earnings to shareholders as dividends, which the model treats as a limited dividend contribution.
- Despite being assigned to the high-profile macro themes of AI Infrastructure and Semiconductors, the theme factor did not fully translate into a high sub-score under the model's current methodology, weighing on the composite.
- The momentum sub-score, while strong, stopped short of a perfect score, suggesting the model applied a modest discount even against four consecutive quarters of accelerating revenue, net income, and operating income growth.
What Could Change the Picture
Bullish Triggers
- A meaningful increase in the dividend payout ratio beyond the current 0.8% level would signal greater capital return to shareholders and could improve the model's dividend assessment.
- Continued sequential acceleration in revenue and net income beyond the 2027Q1 figures would further reinforce the already strong momentum profile.
Bearish Triggers
- Any reversal in the sequential quarterly growth trend — where revenue, net income, or operating income declines quarter-over-quarter — would undermine the momentum thesis that has been a key driver of the composite score.
- A significant increase in the debt-to-equity ratio from its current near-zero level of 0.05 would weaken the financial health profile that currently contributes to the Very Low risk rating.
Risk Profile
Very Low RiskNVIDIA's Very Low risk rating is supported by a debt-to-equity ratio of just 0.05 against total assets of $206,803,000,000, indicating an almost entirely equity-financed balance sheet with substantial financial capacity. This is further reinforced by four consecutive quarters of accelerating revenue and net income growth, suggesting operational resilience rather than fragility.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.