NVIDIA Corporation (NASDAQ: NVDA) closed at $235.74 on May 15, 2026, valuing the company at approximately $4.53T in enterprise value following a fiscal year in which revenue expanded 65.5% to $215.9B and diluted EPS reached $4.90. The data show net margin holding above 55% for a second consecutive year, with return on equity of 76.3% and free cash flow yield of 2.1%. At 37.7x trailing earnings and 28.8x book value, NVDA trades materially above semiconductor sector medians, a premium that compresses if hyperscaler AI capex normalizes. This report examines the valuation case for advisors evaluating concentration risk.

Company Snapshot

NVIDIA Corporation, headquartered in Santa Clara, California and incorporated in 1993, operates two reportable segments: Graphics (GeForce GPUs, GeForce NOW, Quadro/RTX workstation, vGPU, automotive infotainment, Omniverse) and Compute & Networking (data center AI platforms, Mellanox interconnect, automotive AI, Jetson embedded, NVIDIA AI Enterprise software). The company classifies under the Semiconductors industry within the Technology sector and employed 36,000 full-time staff as of the most recent 10-K filing dated February 25, 2026.

Per the FY2026 10-K, Compute & Networking continues to dominate revenue mix following the AI training and inference buildout that began in fiscal 2024. Customers include hyperscale cloud providers (Microsoft Azure, Amazon Web Services, Google Cloud, Oracle Cloud), enterprise OEMs, automotive tier-1 suppliers, and independent software vendors. Geographic exposure remains weighted toward the United States, Taiwan, China, and other international markets, with Taiwan acting as the manufacturing hub through Taiwan Semiconductor Manufacturing Company (TSMC) for advanced node production.

CEO Jen-Hsun Huang, a co-founder, remains in his operating role. The stock carries a beta of 2.24 per the company profile data, indicating roughly 2.2x the market’s price volatility, consistent with high-growth semiconductor exposure.

Recent Financial Performance

The three-year income trajectory reflects the data center capex cycle. Per consolidated 10-K filings:

• Revenue: $60.9B (FY2024) → $130.5B (FY2025) → $215.9B (FY2026), representing 114.2% and 65.5% year-over-year growth, respectively.
• Gross profit: $44.3B → $97.9B → $153.5B, with gross margin moving from 72.7% to 75.0% to 71.1%. The FY2026 contraction of 390 basis points warrants attention and likely reflects the ramp of Blackwell-architecture systems with higher bill-of-materials costs and elevated HBM3e content.
• Operating income: $33.0B → $81.5B → $130.4B. Operating margin compressed modestly from 62.4% (FY2025) to 60.4% (FY2026).
• Net income: $29.8B → $72.9B → $120.1B, with net margin steady at 55.6% in FY2026 versus 55.8% in FY2025.
• Diluted EPS: $1.19 → $2.94 → $4.90, on a diluted share count that declined from 24.94B to 24.43B as buybacks more than offset stock-based compensation dilution.

R&D spend reached $18.5B in FY2026, or 8.6% of revenue, down from 9.9% the prior year as the top-line outpaced research scaling. Capital expenditures consumed 2.8% of revenue. Operating cash flow per share rose to $4.23, and free cash flow per share to $3.98, supporting a free-cash-flow-to-equity figure of $95.9B for the year. Interest coverage of 503.4x and a debt-to-equity ratio of 0.07 indicate negligible balance sheet leverage.