NVIDIA Corporation (NVDA)

FairStock Score: 84/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach NVIDIA as a remarkable business that must still be priced sensibly. The reported figures show explosive growth: in fiscal Q2 2027, the quarter ended 2026-07-26, revenue was $96.2B and net income $59.7B, while in fiscal Q2 2026, the quarter ended 2025-07-27, revenue was $46.7B and net income $26.4B. That is more than a doubling in a year, with net margin around 62% in the latest filed quarter. FairStock's calculations at the 2026-10-26 close show ROE of 117.21%, ROCE of 53.57%, debt-to-equity of 0.17, and TTM free cash flow of $127.0B. The balance sheet and cash generation are exceptional, and the Altman Z-score of 35.91 suggests low financial distress risk. The competitive position is powerful, but this is still a semiconductor business. FairStock labels it CYCLICAL — Semiconductors, because earnings follow the economic cycle. The Piotroski F-score is only 5/9, and beta of 2.22 reminds us that demand and sentiment can swing sharply. Valuation is the rub. At $216.00, the P/E is 27.31 and P/B is 22.78; the Graham Number is $41.08, leaving a Margin of Safety of -413.53%. FCF yield is 2.4%, low in absolute terms, while PEG of 0.21 reflects enormous expected growth. A Graham-style buyer would demand more protection; a Buffett-style quality buyer might tolerate a fair price for a wonderful franchise. My conclusion: superb business, strong financials, but the price already assumes much of the growth. I would watch whether margins and cash flow hold as the cycle matures.

In plain English: NVIDIA makes chips and software for data centers, artificial intelligence, and graphics. The business looks very strong: sales and profits have climbed quickly, and it keeps a large share of each sale as profit. At $216.00, the price looks expensive on conservative measures, although current profits and growth are very strong.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2027 10-Q (period ended 2026-07-26) · fiscal Q1 2027 10-Q (period ended 2026-04-26) · fiscal Q3 2026 10-Q (period ended 2025-10-26) · fiscal Q2 2026 10-Q (period ended 2025-07-27) · FY2026 10-K (period ended 2026-01-25) · FY2025 10-K (period ended 2025-01-26) · FY2024 10-K (period ended 2024-01-28)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer