←  All reports
Ticker Alpha · NVIDIA Corporation · NASDAQ: NVDA
Download PDF
TA
Ticker Alpha
Independent Equity Research
AI Research Report
6 August 2026  ·  Initiation of coverage
NASDAQ: NVDA

NVIDIA Corporation

Information Technology/Semiconductors·Mega Cap·Reported in USD

Accelerated computing platforms for AI training and inference. Data Center is 89.7% of FY26 revenue at $193.7B; Gaming, Pro Visualization, Automotive and OEM together come to $22.2B.

Bullish
Bearish
Neutral
Bullish
$218.21
Last close · 6 Aug 2026
52-week range $164.07–$236.54
Initiation  ·  12-month horizon  ·  Risk: High

Trailing earnings doubled in twelve months while the shares gained 22%, so the multiple has already halved to 33× — the 4th percentile of NVIDIA's own five-year range, and 24× a FY27 consensus still modelled at +82% growth. We are bullish on that arithmetic and below the Street on the reason: inventory is up 112% and receivables 67% against 65% revenue growth. That is what a ramp financed by the balance sheet looks like, and it is the line that breaks first.

What Would Change Our View
▲Inventory days fall back under 120 with gross margin held above 74%
▼Any top-four hyperscaler guides 2027 capex growth below 20%
Key Catalysts
26 Aug 2026Q2 FY27 results
late Jan 2027Hyperscaler capex budgets
24 Feb 2027FY28 guidance
Market Cap
$5.29T
EV $5.28T · net cash
Revenue TTM
$253.5B
FY27 cons. $393.4B
Rev. Growth
+70.7%
+85.2% latest qtr
Gross Margin
74.1%
74.9% latest qtr
FCF Margin
47.0%
$119.1B TTM
P / E
33.4×
24.2× on FY27E
Share Price — 12 Months Back, 12 Months Forward
Weekly closes, USD
Street target range $218–$500 · mean $319.48 150200250300350400 $395Bull · +81.0%$283Base · +29.7%$150Bear · −31.3% AUG 2025NOVFEB 2026MAYTODAYNOVFEB 2027MAYAUG 2027
Ticker Alpha Scorecard
Scored 1–5 against eight AI-semiconductor peers and the company's own 5-year history
Growth
Exceptional
Profitability
Best in class
Balance Sheet
Fortress
Valuation
Fair, not cheap
TA
Ticker Alpha  ·  NVIDIA Corporation  ·  NASDAQ: NVDA
02 Business & Model

What NVIDIA Actually Sells

NVIDIA sells accelerated computing systems — the processors, the networking that lashes thousands of them into one machine, and the CUDA software layer that makes the result expensive to leave. It manufactures none of the silicon. TSMC does that, which is why capital spending is 2.6% of revenue and $253.5B of trailing sales converts into $119.1B of free cash.

The concentration is the whole story. Data Center was 39.4% of revenue in FY22 and is 89.7% today, and a handful of hyperscalers fund most of it. That is either the best demand signal in the market or the narrowest one, and nothing in the reported financials settles which. The customers answer it, on the dates listed on page 7.

Revenue / Employee
$6.04M
42,000 staff
R&D / Revenue
8.2%
$20.8B TTM
Capex / Revenue
2.6%
Fabless — TSMC builds it
Gross Margin
74.1%
On $253.5B TTM
Inventory Days
144
+31 days vs FY25
Data Center Share
89.7%
39.4% in FY22
Revenue by Segment — FY22 to FY26
Company filings, $M. Fiscal years end late January
050B100B150B200B FY22FY23FY24FY25FY26 Data Center89.7% of revenue · +68.2% YoYGaming7.4% of revenue · +41.3% YoYPro Visualization1.5% of revenue · +69.9% YoYAutomotive + OEM1.4% of revenue · +42.5% YoY $26.91B $215.94B

In four years this stopped being a graphics company. Gaming grew from $12.5B to $16.0B — a real business, compounding at 6.5% a year — and went from 46% of revenue to 7.4%, because Data Center grew eighteen-fold underneath it. Everything on the next six pages is a judgment about one dark band.

Where The Revenue Is Billed
FY23 vs FY26
FY23 FY26
United States162.3% 3-yr CAGR$149.62BTaiwan82.3% 3-yr CAGR$42.34BChina50.4% 3-yr CAGR$19.68BOther Americas-10.1% 3-yr CAGR$4.30B 0$50B$100B$150B

These are ship-to locations, not end markets. Singapore was 18.1% of FY25 revenue and vanishes from FY26 entirely as invoicing was re-cut; Taiwan absorbs most of it. China fell from 13.1% of revenue to 9.1% while still growing in dollars.

Competes Against
AMD InstinctGoogle TPUAWS TrainiumBroadcom ASICsMicrosoft MaiaMarvellIntel Gaudi
Moat Assessment
Wide
Deep and real at the software layer. Structurally exposed at both ends of the supply chain.
Structural Advantages
▲CUDA is twenty years of accumulated tooling — porting a stack costs more than the hardware
▲NVLink and Mellanox make the rack the product, so the comparison is never chip-to-chip
▲74.1% gross margin held through a full architecture transition and a $4.5B write-off
Structural Weaknesses
▼A handful of customers fund Data Center — and every one is designing its own accelerator
▼TSMC is a single point of failure for both supply and cost
▼China access is set by export policy, not by NVIDIA or by its customers
TA
Ticker Alpha  ·  NVIDIA Corporation  ·  NASDAQ: NVDA
03 Financial Performance

Has It Actually Performed?

Revenue is eight times what it was four years ago and 60 cents of every dollar reaches the operating line. Performance is not the open question. Whether the cash follows the earnings is — and for five consecutive years it has not.

4-Yr Revenue CAGR
68.3%
FY26 alone +65.5%
4-Yr EPS CAGR
89.6%
FY26 alone +66.7%
FCF Conversion
74.6%
of net income, TTM
Incremental Margin
57.3%
FY26 Δ EBIT / Δ revenue
ROIC
63.0%
Peer median 12.5%
Five-Year Summary
$B except per share · fiscal years end late January
  FY22 FY23 FY24 FY25 FY26 What it says
Revenue 26.927.060.9130.5215.9 Eight-fold in four years, off a real base
Revenue growth +61.4%+0.2%+125.9%+114.2%+65.5% FY23 was a crypto hangover, not a ceiling
Gross profit 17.515.444.397.9153.5 Added $55.6B of gross profit in FY26 alone
Gross margin 64.9%56.9%72.7%75.0%71.1% FY26 dip is one quarter's $4.5B H20 write-off
Operating income 10.04.233.081.5130.4 Larger than the revenue of all but a few peers
Operating margin 37.3%15.7%54.1%62.4%60.4% Peaked in FY25; scale has stopped adding margin
Net income 9.84.429.872.9120.1 More than the next four AI-semi peers combined
Diluted EPS $0.38$0.17$1.19$2.94$4.90 Split-adjusted; buybacks add about a point a year
Free cash flow 8.13.827.060.996.7 Below net income in every one of the five
Net Cash
$51.1B
$62.6B cash & inv., $11.4B debt
Net Debt / EBITDA
−0.3×
Net cash position
Net Interest
+$2.0B
A lender, not a borrower
Current Ratio
3.44×
Quick ratio 2.85×
Inventory + Receivables
$59.9B
+80% on +65% revenue
Revenue
+61.4%+0.2%+126%+114%+65.5% 0100B200B 2223242526 $M revenue · YoY growth above
Margins
Gross Op. FCF
71.1% 60.4% 44.8% 20%40%60%80% 2223242526 Fully recovered from the FY23 trough
Earnings Quality
Net income Free cash flow
060B120B 2223242526 FCF below earnings, every single year
Earnings Track Record — Last Eight Quarters
Reported EPS against consensus at the time
+5.4%Q2 25+8.0%Q3 25+5.0%Q4 25+9.9%Q1 26+4.0%Q2 26+3.2%Q3 26+5.2%Q4 26+6.3%Q1 27 +0%+5%+10%

Eight beats from eight, in a band between +3.2% and +9.9% and averaging +5.9%. A streak that regular is a guidance policy, not a forecasting edge: the printed quarter is almost never the risk. The guide that follows it is.

TA
Ticker Alpha  ·  NVIDIA Corporation  ·  NASDAQ: NVDA
04 Peers & Relative Position

How Does It Compare?

Against eight other names in the accelerator supply chain, NVIDIA ranks first or second on every operating measure and sits mid-pack on price. It trades 28% above the peer median on EV/Sales and 51% below it on earnings. Both statements are true. The distance between them is the operating margin.

Comparable Companies
TTM figures · sorted by market capitalisation · NVIDIA highlighted
Company Market cap Rev growth Gross margin Op margin ROIC EV / Sales P / E
NVIDIA NVDA$5.29T+65.5%74.1%64.0%63.0%20.8×33.4×
TSMC TSM$2.19T+33.0%64.2%56.0%27.1%13.3×27.4×
Broadcom AVGO$2.01T+23.9%67.0%43.7%19.5%27.3×68.4×
Micron MU$1.02T+48.9%72.6%65.8%44.0%11.1×20.2×
AMD AMD$799B+34.3%53.2%15.7%7.6%19.3×124.5×
Intel INTC$510B−0.5%38.9%0.1%0.0%9.6×n/m
Arm Holdings ARM$307B+22.8%95.3%17.3%7.3%59.1×296.7×
Marvell MRVL$189B+42.1%50.6%16.2%5.0%21.8×73.3×
Qualcomm QCOM$168B+13.7%54.2%23.2%17.4%4.1×18.3×
Peer median excl. NVDA$655B+28.4%59.2%20.3%12.5%16.3×68.4×
Growth Against Valuation
Revenue growth vs EV/Sales
peer fit NVDATSMAVGOMUAMDINTCARMMRVLQCOM 0×20×40×60× 0%20%40%60% EV / SALES REVENUE GROWTH, LATEST FY
Where NVIDIA Ranks
Percentile in the nine-name set
Revenue growth
100th pct
Gross margin
88th pct
Operating margin
88th pct
Return on capital
100th pct
Cheapness on P/E
57th pct
Cheapness on EV/Sales
38th pct

The two cheapness rows disagree because the denominators do: 64 cents of every sales dollar becomes operating profit.

The regression through this set is almost flat. Arm grows 23% and trades at 59× sales; Micron grows 49% and trades at 11×. Growth explains close to nothing about price here. NVIDIA sits a fraction below a line that barely slopes — the market is not charging it a premium for being the fastest-growing name in the group.

Broadcom  ·  AVGO
Revenue growth
+23.9%
Operating margin
43.7%
ROIC
19.5%
P / E
68.4×
The other side of the trade
Designs the custom accelerators that displace NVIDIA at the same buyers, for twice the earnings multiple.
Micron Technology  ·  MU
Revenue growth
+48.9%
Operating margin
65.8%
ROIC
44.0%
P / E
20.2×
The agnostic way in
HBM ships into every accelerator whoever wins the socket, at 20× earnings — and is the most cyclical name here.
Advanced Micro Devices  ·  AMD
Revenue growth
+34.3%
Operating margin
15.7%
ROIC
7.6%
P / E
124.5×
Priced for a share gain
Almost NVIDIA's sales multiple on a quarter of the operating margin. MI400 has to land.
TA
Ticker Alpha  ·  NVIDIA Corporation  ·  NASDAQ: NVDA
05 Valuation & What's Priced In

What Is It Worth?

Three questions in order: cheap against its own history, cheap against its industry, and what would have to be true for today's price to be right. The last matters most — it puts the market in the position of making a claim, and lets us judge that instead of ours.

Share Price
$218.21
52-wk $164.07–$236.54
Enterprise Value
$5.28T
$5.29T cap · net cash
EV / Sales
20.8×
−17% vs 5-yr median
EV / EBITDA
27.4×
−45% vs 5-yr median
P / E
33.4×
−46% · 24.2× on FY27E
FCF Yield
2.3%
On market cap
Against Its Own Five Years
Daily observations
EV / Salesmedian20.8×12.2×38.8×26thEV / EBITDAmedian27.4×140.9×4thP / Emedian33.4×195.3×4th Bar spans the 5th to 95th percentile of daily observations since Aug 2021 · dot is today
Against Peers And Sector
Median multiples
P / E, TRAILINGNVIDIA33.4×AI-semi peers68.4×NASDAQ tech47.6×EV / EBITDANVIDIA27.4×AI-semi peers45.1×

NVIDIA has never been this cheap on earnings. The P/E and EV/EBITDA both sit at the 4th percentile of five years of daily observations — not because the price fell, but because earnings tripled underneath it. The shares are cheaper than the AI-semi peer median and than the NASDAQ technology sector, which has not been true at any point in this cycle.

Reverse DCF — What Today's Price Requires
10-year explicit forecast · WACC 10.5% · terminal growth 3.0% · terminal FCF margin 40%
On A Flat Path
Revenue CAGR, 10 yrs
21.0%
Implied FY36 revenue
$1.70T
Implied FY36 FCF
$681B
Verdict
Heroic
On The Street's Path
FY27–29 per consensus
$393B → $685B
CAGR needed, FY30–36
12.2%
Implied FY36 revenue
$1.53T
Verdict
Ordinary
Which Is It?
The next three years decide

Accept consensus through FY29 and the price needs only 12% a year afterwards, slower than cloud has compounded for a decade. Reject it and the same price demands 21% for ten straight years. No valuation argument here is not really an argument about capex.

Street Target Revisions
Average target by lookback window
$270$290$310$330 LAST 12MLAST QUARTERTODAY $279 $319 +14.4% Average Street price target by lookback window · the Street has been marking up, not down
Estimates & Ratings
79 analysts
Mean target, today
$319.48
Mean target, 12m ago
$279.15
FY27 EPS consensus
$9.00
FY28 EPS consensus
$12.75
FY27 EPS range
$8.12 – $12.17
Ratings
60 buy · 16 hold · 3 sell

The mean target of $319.48 puts 35.5× on FY27 earnings, a re-rating from today's 24.2× forward. Our $283 asks for less — 22.2× on the FY28 number the market will actually be discounting a year from now.

TA
Ticker Alpha  ·  NVIDIA Corporation  ·  NASDAQ: NVDA
06 Scenarios & Target Derivation

How We Got To $283

Every assumption behind the three targets on page one is on this page. Change one and the number moves — that is the point. A target you cannot take apart is a guess with a decimal place.

The Assumptions Behind Each Case
12-month horizon · valued on FY28E · target date August 2027
Driver Bear Base Bull Why it moves
Revenue CAGR, FY26–28 +39.5%+56.7%+63.9% Hyperscaler capex, nothing else
FY28E revenue $420B$530B$580B Consensus is $563B
FY28E operating margin 55.0%63.0%65.0% Rack mix and HBM cost
Diluted shares, B 24.223.923.6 Buybacks net of stock compensation
FY28E EPS $8.35$12.30$14.10 Consensus is $12.75
Exit P / E on FY28E 18.0×23.0×28.0× Trailing multiple is 33.4× today
12-month target $150$283$395 −31.3% / +29.7% / +81.0%
What Each Case Looks Like
FY26 actual, then three years modelled · FY27 pinned to the consensus range
REVENUE, $B $430B $610B $720B 200300400500600700 FY26AFY27EFY28EFY29E OPERATING MARGIN 50.0% 61.5% 64.0% 45%50%55%60%65%70% FY26AFY27EFY28EFY29E
For The Bull Case To Be Right
All four, not one
▲2027 hyperscaler capex budgets guided up more than 25%
▲Gross margin holds above 74% through the Rubin transition
▲Inventory days fall back under 120 without a revenue miss
▲Sovereign or enterprise demand becomes a named, funded line
For The Bear Case To Be Right
Any two are enough
▼Any top-four customer guides 2027 capex growth below 20%
▼Receivables keep outgrowing revenue for two more quarters
▼Custom silicon passes a quarter of hyperscaler accelerator spend
▼Operating margin breaks 58% on rack mix and stays there
Target Price Sensitivity
FY28E EPS × exit P/E
FY28E EPS17×20×23×26×29×
$9.50$162$190$219$247$276
$11.00$187$220$253$286$319
$12.30$209$246$283$320$357
$13.60$231$272$313$354$394
$15.00$255$300$345$390$435
Expected Value Check
Bear $150 × 25%
$37.50
Base $283 × 50%
$141.50
Bull $395 × 25%
$98.75
Probability-weighted
$277.75
Headline base target
$283.00
Expected return
+27.3%

The weighted value lands 1.9% below the headline, so the base case is not being carried by the bull tail. Note the shape: the bear costs 31% and the bull pays 81%. That asymmetry, not the point estimate, is the reason for a bullish rating.

TA
Ticker Alpha  ·  NVIDIA Corporation  ·  NASDAQ: NVDA
07 Key Catalysts

What To Watch, And When

Eight events over the next eighteen months, each scored for how much of the thesis it settles. The two heaviest dates are a January capex season NVIDIA does not control, and the February guide that prices off it.

The Next Eighteen Months
Dot size is impact · a hollow dot means the date is estimated, not confirmed
Positive skew Two-sided Negative skew
Q3 26Q4 26Q1 27Q2 27Q3 27 EARNINGSDEMANDPRODUCT Q2 FY2726 Aug 2026Hyperscaler Q3late Oct 2026Q3 FY2718 Nov 2026FY28 budgetslate Jan 2027FY27 + guide24 Feb 2027GTC 2027mid Mar 2027Q1 FY2826 May 2027Q2 FY2825 Aug 2027
Catalyst Register
Impact is the share of the thesis the event settles, not the expected price move
26 Aug
2026
Confirmed
Q2 FY27 results
Twenty days out. Consensus wants $91.9B and $2.08. Watch: Gross margin against 74.9%, and whether inventory days come down from 144.
Impact
Decisive
Skew
Two-sided
All three
late Oct
2026
Estimated
Hyperscaler September-quarter capex
Four customers fund most of Data Center. Their capex guidance leads NVIDIA revenue by roughly two quarters. Watch: Any of the four trimming full-year capex, or language shifting from build to optimise.
Impact
High
Skew
Two-sided
Base or bear
18 Nov
2026
Estimated
Q3 FY27 results
The first quarter that laps a fully ramped comparison, so the growth rate stops flattering itself. Watch: Whether receivables growth finally falls back below revenue growth.
Impact
High
Skew
Two-sided
Base or bear
late Jan
2027
Estimated
Hyperscaler 2027 capex budgets
The single most decision-relevant date on this page, and NVIDIA is not the one presenting. Watch: Aggregate 2027 capex growth. Below 20% and the bear revenue path becomes the base.
Impact
Decisive
Skew
Two-sided
All three
24 Feb
2027
Estimated
Q4 FY27 results and FY28 framing
Closes FY27 against the $393B consensus and sets the base every downstream estimate is priced off. Watch: FY28 revenue framing against $563B, and whether 60%+ operating margin is defended.
Impact
Decisive
Skew
Two-sided
All three
mid Mar
2027
Estimated
GTC 2027 keynote
The annual architecture reveal, and historically a re-rating event when it lands with customers attached. Watch: Committed volume from a named sovereign or enterprise buyer.
Impact
Medium
Skew
Positive
Bull
26 May
2027
Estimated
Q1 FY28 results
First print on the FY28 base. Guidance credibility is settled here, not in February. Watch: Revenue against the $563B annual path, roughly $130B for the quarter.
Impact
High
Skew
Two-sided
Bull or bear
25 Aug
2027
Estimated
Q2 FY28 results
Falls on the target date. The multiple applied on page 6 is the one the market will be paying here. Watch: Whether gross margin has held above 70% through a full architecture transition.
Impact
High
Skew
Two-sided
Bull or bear
If You Only Watch One Thing
late Jan · capex budgets

Four companies fund most of Data Center. What they budget for 2027 settles more of this thesis than anything NVIDIA says.

Aggregate 2027 capex Reads as Target
Up more than 25%Second wave funded; FY28 consensus is too low$395
Up 20 – 25%Digestion without a break, base case intact$283
Up less than 20%The bear revenue path becomes the base$150
Not On This Calendar
No date
Unscheduled events, any of which can move the shares further than the register above.
●An export-control change on China or a third country
●A hyperscaler announcing an internal-silicon migration
●TSMC capacity or CoWoS packaging disruption
●An AI-lab funding failure that strands committed orders
●A large acquisition — $60B of cash and no debt to speak of
TA
Ticker Alpha  ·  NVIDIA Corporation  ·  NASDAQ: NVDA
08 Risks & Signals

What Could Break This

Six risks ranked by what they would cost rather than how likely they are, each with the observable that tells you it is happening. A risk you cannot monitor is not a risk, it is an anxiety.

Risk Register
Severity is impact on our base target · likelihood is over 24 months
1
Hyperscaler capex digestion
Four customers fund most of Data Center. A year of flat budgets moves FY28 revenue toward the $420B bear path. Watch: aggregate 2027 capex guidance in late January.
Severity
Likelihood
2
Every large customer is funding an alternative
Google TPU, Trainium, Maia and Broadcom parts chase the same workloads. Displacement arrives at the margin, not as a lost account. Watch: custom silicon past 25% of accelerator spend.
Severity
Likelihood
3
The ramp is being financed by working capital
Inventory is up 112% and receivables 67% against 65% revenue growth, and inventory days have gone from 113 to 144. Watch: a third quarter of receivables outgrowing revenue.
Severity
Likelihood
4
One foundry, one packaging bottleneck
TSMC leading-edge capacity and CoWoS packaging are the only route to volume, with no qualified second source. Watch: TSMC capex commentary and packaging lead times.
Severity
Likelihood
5
Export policy sets the China ceiling
China is 9.1% of billings, down from 13.1%, and what may be sold there is decided in Washington. Watch: any rule change covering re-export or interconnect.
Severity
Likelihood
6
Gross margin through the next transition
74.1% survived Blackwell, but rack-scale systems carry more bought-in content and dilute as the unit sold gets larger. Watch: gross margin below 70% for two quarters.
Severity
Likelihood
Who Sold, And How Much
Form 4 filings, last twelve months
InsiderRoleFilingsValue
Jensen HuangCEO276$806M
Mark StevensDirector14$700M
Ajay PuriEVP Field Ops13$217M
Colette KressCFO140$111M
All insiders15 people513$2.10B
Net Insider Value By Month
−$500M−$250M0 ASONDJFMAMJJ
Reading The Signals
Evidence, not trivia
Disposals / open-market buys
513 / 0
Net insider value, 12m
−$2.10B
As share of market cap
0.04%
Insiders selling
15 of 15
Free float
95.9% · 23.2B sh
Analyst ratings, 6m change
Unchanged

Read this as texture, not signal. The disposals run through pre-arranged plans and $2.10B is four basis points of a $5.3T company. The one fact worth keeping is the zero: across twelve months and fifteen insiders, nobody bought a share on the open market.

Nothing here contradicts the bullish case. Nothing here supports it either.

Methodology & Limitations

How the targets are built

Each case sets revenue, margin and multiple assumptions independently, converts operating income to EPS at an 88% net-to-operating ratio, then values FY28 estimates at a twelve-month horizon. Probabilities are subjective; the headline is the base case.

Where the data comes from

Prices, consensus estimates, analyst targets and Form 4 filings from Financial Modeling Prep; fundamentals from NVIDIA's SEC filings. Peer medians are calculated across the nine-name set on page 4. Data as of 6 August 2026.

What this cannot do

Generated automatically from structured data. It cannot interview management, verify disclosure quality, or price an event it was never told about. Institutional ownership was unavailable and is therefore not shown rather than estimated.

This report was generated, not written.

Every figure above comes from NVIDIA's own SEC filings and live market data, assembled and written up automatically. Ticker Alpha is building this for any listed company, on demand — so the research you need on a Tuesday afternoon takes a minute, not a week.

See the other reports Explore NVDA's filed financials
Free while in preview — sign up to read the full report.