Financials Analysis
Income Statement
NVIDIA Corporation (NVDA) has demonstrated strong financial performance over the analyzed periods. Profitability metrics show significant growth, with gross profit increasing from $15.36 billion in FY2023 to $44.30 billion in FY2024, and net income rising from $4.37 billion to $29.76 billion over the same period. This indicates robust operational efficiency and market demand for its products. Liquidity appears stable, with consistent positive net interest income and manageable interest expenses. Solvency is strong, as evidenced by the company’s ability to generate substantial operating income and maintain low debt levels relative to its earnings. Overall, NVDA exhibits excellent financial health, driven by its ability to scale revenue and profitability effectively while maintaining operational and financial stability.
Balance Sheet
NVIDIA Corporation (NVDA) demonstrates strong financial health across profitability, liquidity, solvency, and overall stability metrics. The company has shown consistent growth in total assets, increasing from $41.18 billion in fiscal year 2023 to $96.01 billion in the latest quarter of fiscal year 2024. This growth is accompanied by a significant increase in shareholder equity, which rose from $22.10 billion in fiscal year 2023 to $65.89 billion in the latest quarter. Retained earnings have also grown substantially, indicating strong profitability.
Liquidity metrics are robust, with current assets consistently exceeding current liabilities, resulting in a healthy current ratio. For instance, in the latest quarter, current assets were $67.64 billion compared to current liabilities of $16.48 billion. Solvency is supported by manageable levels of long-term debt relative to equity, with long-term debt remaining stable around $8.46 billion in the latest quarter.
Overall, NVDA’s financial stability is reinforced by its ability to generate substantial retained earnings and maintain a strong equity position, while effectively managing liabilities and debt levels.
Cash Flow Data
NVIDIA Corporation (NVDA) demonstrates strong financial health based on its cash flow statements and profitability metrics. The company has shown significant growth in operating cash flow, with $28.09 billion reported for the fiscal year ending January 2024, compared to $5.64 billion in the previous year. This indicates a robust increase in operational efficiency and profitability. Net income has also surged, reaching $29.76 billion in 2024, up from $4.37 billion in 2023, showcasing exceptional profitability growth.
Liquidity appears stable, with consistent cash flow from operations and manageable capital expenditures. Solvency is supported by the company’s ability to generate substantial cash flow, which exceeds its financing and investment cash outflows. Stability is evident in the consistent upward trend in profitability and cash flow generation, reflecting strong operational performance and market demand.
Overall, NVDA’s financial health is excellent, driven by its remarkable profitability growth, stable liquidity, and solid solvency metrics.
Sentiment Analysis
News Sources 1
The sentiment around NVDA appears to be highly positive, with strong analyst support and expectations for significant growth driven by AI trends. The stock is highlighted as a top choice for 2025, with analysts predicting substantial future gains. This optimism is supported by the increasing focus on AI technologies and NVDA’s leadership in this sector.
News Sources 2
The sentiment around NVDA stock is mixed. On one hand, Nvidia is recognized for its strong momentum and growth rankings, being in the 77th and 95th percentiles respectively, which indicates robust fundamentals and potential for long-term growth. On the other hand, the stock has experienced a significant decline of over 21% in 2025, attributed to concerns over a slowdown in AI capital expenditures and geopolitical issues. Additionally, the IPO of CoreWeave, a major client and investor of Nvidia, has been challenging, with its pricing below expectations and concerns about its financial health, which could negatively impact Nvidia’s market sentiment. Analysts suggest that while Nvidia’s long-term growth trend remains intact, the short-term outlook is cautious due to these factors.
News Sources 3
The sentiment surrounding Nvidia (NVDA) in recent news is mixed, with a slight positive tilt. Several articles highlight Nvidia’s strong position in the AI and semiconductor markets, with mentions of significant orders for its chips and its role in AI infrastructure. However, concerns about tariffs, slowing AI investment, and broader market sell-offs have also been noted. The sentiment scores for NVDA range from neutral to somewhat bullish, with a few bearish mentions related to market conditions and trade restrictions. Overall, the sentiment reflects cautious optimism about Nvidia’s long-term prospects despite current challenges.
Human Analyst Ratings
The analyst recommendations for NVDA show a consistently strong positive sentiment over the analyzed periods. The number of ‘buy’ and ‘strong buy’ recommendations significantly outweigh ‘hold’ and ‘sell’ recommendations, with no ‘sell’ or ‘strong sell’ ratings reported. This indicates a robust confidence in NVDA’s performance and potential among analysts.
Industry Analysis
The semiconductor industry in the USA is currently experiencing a dynamic phase characterized by significant growth opportunities and challenges. Key indicators show robust revenue growth, driven by advancements in AI and generative AI chips, which are expected to dominate the market. The industry is projected to reach new revenue highs, with AI-related applications becoming the primary revenue driver. However, challenges such as geopolitical tensions, talent shortages, and supply chain vulnerabilities persist, potentially impacting the industry’s resilience and growth trajectory. Strengths include the industry’s innovation capacity, supported by substantial R&D investments and government initiatives like the CHIPS Act. These factors position the USA as a leader in semiconductor technology, although addressing workforce and geopolitical issues remains critical for sustained growth.
Economic Report
Real GDP Analysis
The Real GDP data for the USA shows a consistent upward trend over the years, with notable fluctuations during periods of economic downturns such as the 2008 financial crisis and the 2020 pandemic. The data indicates strong recovery and growth in recent years, particularly from 2021 onwards, with quarterly values steadily increasing. This suggests a robust economic performance and resilience in the face of challenges.
Federal Funds (Interest) Rate Analysis
The Federal Funds Rate data indicates a significant trend in monetary policy adjustments over the years. Starting from a low rate of 0.08% in early 2021, the rate gradually increased, reflecting tightening monetary policy, reaching a peak of 5.33% in mid-2023. This was followed by a slight decrease to 4.33% by early 2025, suggesting a potential easing of monetary policy or stabilization. The data highlights the Federal Reserve’s response to economic conditions, such as inflation and growth, through interest rate adjustments.
CPI Analysis
The Consumer Price Index (CPI) for all Urban Consumers has shown a consistent upward trend over the years, indicating inflationary pressures in the economy. The index has risen from 241.353 in November 2016 to 319.082 in February 2025, reflecting a significant increase in the general price level. Monthly changes also show a steady increase, with occasional periods of stabilization. This data suggests that inflation has been persistent, and policymakers may need to consider measures to address its impact on consumers.
Unemployment Rate Analysis
The unemployment rate in the USA has shown a significant recovery from the peak levels observed during the COVID-19 pandemic in 2020, where it reached as high as 14.8%. Since then, the rate has steadily declined, reaching pre-pandemic levels by late 2021. In recent years, the unemployment rate has stabilized around 4%, indicating a relatively healthy labor market. The data suggests that the economy has managed to recover and maintain stability in employment levels, although the slight fluctuations around 4% in recent months may warrant monitoring for potential trends.
Treasury Yield Analysis
The 2-Year Treasury Constant Maturity Rate has shown significant fluctuations over the observed period. Starting from mid-2023, the yield was around 3.93% and gradually increased, peaking at 5.14% in October 2023. Following this peak, the rate began to decline, reaching approximately 3.97% by March 2025. This trend suggests a period of tightening monetary policy followed by easing, likely in response to economic conditions such as inflation and growth rates. The data indicates a dynamic interest rate environment, reflecting the Federal Reserve’s adjustments to maintain economic stability.
Technical Analysis
SMA Analysis
The stock’s 200-day SMA has been steadily increasing over the past months, indicating a consistent upward trend in the stock’s average closing price. This suggests positive momentum and potential for continued growth, assuming no major market disruptions. The gradual increase in the SMA values reflects a stable and healthy upward trajectory.
EMA Analysis
The stock’s 200-day EMA has been showing a slight downward trend recently, indicating a potential weakening in long-term momentum. The EMA values have been decreasing over the past few days, suggesting that the stock might be facing resistance in maintaining its previous upward trajectory. This could imply a consolidation phase or a potential reversal in the stock’s price movement.
STOCH Analysis
The Stochastic (STOCH) indicator for NVDA shows that the SlowK value has recently increased from 24.7225 to 44.0969, while the SlowD value has risen from 14.9409 to 27.1661. This suggests that the stock’s momentum is improving, as the indicator is moving away from oversold levels. However, the values are still below the typical overbought threshold, indicating that there may be room for further upward movement. The trend in the STOCH values over the past few days supports a potential bullish outlook, but caution is advised as the stock is not yet in a strong momentum zone.
RSI Analysis
The RSI for the stock has been trending below 50 recently, indicating a lack of strong bullish momentum. The current RSI value is 43.53, which suggests the stock is in a neutral to slightly bearish phase. Historically, the RSI has fluctuated around the 50 mark, with occasional peaks above 60, indicating periods of stronger bullish sentiment. However, the recent trend shows a decline from higher levels, suggesting potential weakness in the stock’s price movement. This could imply limited upside potential unless there is a reversal in momentum.