NVIDIA (NVDA)
The undisputed king of the AI chips data centres need to train and run their models.
Is NVIDIA a good stock for a UK beginner?
The honest version: There's no rating here and nothing for sale. In its favour: Very high net margin and revenue growth versus most large companies. Worth weighing: Valuation remains elevated versus the broader market on a trailing basis.
Is this normal for this company?
Each figure against the range this same company has produced recently. Neither end of a range is the good end.
Share price divided by the earnings actually reported over the four most recent quarters. The range is the same calculation at each of this company's last few results, so roughly the past year.
Profit as a share of sales, from the company's own quarterly statements. The range covers the 5 quarters we hold, and the figure shown is its most recent one.
How these ranges are built
Every number here is the company's own reported figure, not a comparison with other companies. The ranges come from this company's own results and its share price. Where it reports in a different currency from the one its shares trade in, the price-to-earnings range is left out rather than mixing the two.
What does NVIDIA do?
Nvidia designs the graphics chips (GPUs) and specialised AI accelerator chips that data centres lean on to train and run AI models, plus gaming and other computing. It's a money machine right now: a 63% net margin: How much of each £1 of sales becomes profit after all costs. Higher = more profitable per sale. (it keeps 63p of every £1 of sales as profit), a 114% return on equity: How much profit the company makes for each £1 shareholders have put in. Higher usually means a more efficient business., and 85% revenue growth: How fast the company's sales grew versus a year ago. as everyone races to build AI kit. The one thing worth watching -> it's priced like a star, with a P/E: Price-to-earnings: the share price divided by yearly profit per share. Lower can mean cheaper; higher often means investors expect fast growth. of 32.3 (about 16.5 on next year's forecasts) that's elevated versus the market, sky-high growth and quality scores (G95, Q95) but a low value score (V33) - the classic premium-priced grower.
On our factor screen it looks strongest on growth and quality, and weakest on value.
- ✓Pays a dividend - about 0.5% a year
- ✓Growing - revenue up about 85% over the year
- ✓Very profitable - turns about 63% of sales into profit
- !High P/E of 33 - big growth is already priced in
- ✓Low debt - a sturdier balance sheet
- ✓Strong return on shareholder money (ROE 114%)
- Quality screens high
- Growth screens high
- —
Does NVIDIA pay a dividend?
Yes - NVIDIA currently pays a dividend of about 0.5% a year, which is £4.60 a year for every £1,000 invested (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it. An ISA doesn't shelter the US tax on this one →
What do the numbers say about NVIDIA's dividend?
There's no rating here, and we don't judge whether the dividend will continue - that would be advice. Here are the figures income investors usually look at, and what each one means, so you can weigh it up yourself.
Figures are from the latest available data and can be distorted by one-off results. Past payments don't predict future ones, and a dividend can be cut at any time. This lays out the numbers to help you understand them - it is not a view on what will happen.
Most recent ex-dividend date: 4 Jun 2026. To receive a dividend you must already own the shares before the ex-dividend date; become a holder on or after it and the previous owner keeps that payment. Why the price usually falls that morning →
Does NVIDIA have more cash or more debt?
It holds about $53.17B in cash against about $12.81B of debt - so it has net cash of about $40.36B. More cash than debt is a cushion: it does not need to borrow just to cover what it owes.
From the latest reported balance sheet. Cash and debt levels change, and some borrowing is normal - this is context, not a judgment.
What do NVIDIA's numbers mean?
How has it performed?
Growth of £1,000, the worst fall, and year by year
Over about 2 years to 2026-09-11. This is the share price only - reinvesting the dividends would add to it. And it's the USD return - as a UK investor your actual £ return also moves with the exchange rate. Past performance is not a guide to the future, and it could just as easily have fallen.
How much has NVIDIA actually fallen?
Over the last 2 years of daily prices, NVIDIA fell as much as −37% from a high to a later low. Falls like this are normal when you own a share.
Past falls are not a forecast - it can fall further, or recover.
How has it done year by year?
Calendar-year total return - the share price with dividends reinvested - from adjusted closing prices. The current year is only part-complete. Past returns are not a guide to the future.
A closer look at the numbers
Ownership, earnings history, where the money goes, and the outlook range
Does the share price tell you if it's cheap or expensive?
Who owns NVIDIA?
About 66% of NVIDIA, or about 66 in every 100 shares, is held by big institutions such as pension and index funds, and company insiders hold about 4%. The rest, roughly 30%, is held by the public and smaller investors.
What this does and doesn't tell you
This is a recent snapshot of the share register, and it moves. We don't read anything into who owns what - a high institutional share is common for any large listed company and is not a signal about it.
Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.
Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.
How much money does NVIDIA make?
Revenue and profit by quarter, and how much of each sale turns into profit.
Where does each £100 of NVIDIA's sales go?
A rough split of the latest full-year figures: of every £100 of sales, about £26 covers making the product or service, £11 goes on running costs, tax and interest, and about £63 is left as profit. Margins vary a lot by industry, and one-off items can distort a single year.
When does NVIDIA report earnings, and how did recent quarters go?
NVIDIA is next scheduled to report on about 2026-11-17 - dates can move, and we don't predict results; this just tells you when to look.
‘Beat’ and ‘missed’ are against what analysts expected, not whether the business is doing well.
| Reported | Expected EPS: The earnings per share analysts expected for the quarter - the average of their forecasts. 'Beating' or 'missing' is measured against this number. | Actual EPS | vs expected |
|---|---|---|---|
| 2026-08-26 | $2.09 | $2.22 | Beat +6% |
| 2026-05-20 | $1.77 | $1.87 | Beat +6% |
| 2026-02-25 | $1.54 | $1.62 | Beat +5% |
| 2025-11-19 | $1.26 | $1.30 | Beat +3% |
| 2025-08-27 | $1.01 | $1.05 | Beat +4% |
| 2025-05-28 | $0.75 | $0.81 | Beat +8% |
Across the last 6 quarters here, NVIDIA came in ahead of what analysts expected 6 times. One quarter is noise, not a trend.
See who else reports over the next two weeks →
Where these figures come from
Each quarter a company reports its results against a consensus of analyst forecasts. The figures here are reported versus expected earnings per share from published results; the expectation is that analyst consensus, not our view. Report dates are estimates and can move.
What are the scenarios for NVIDIA?
An illustrative range for the year ahead — not a prediction or a price target.
What are the pros, cons and common questions?
The case each way, and the questions people ask
AI adoption broadens across industries and the company sustains its technology lead.
AI spending proves cyclical or overbuilt, or competition erodes pricing power over time.
What are the pros and cons of NVIDIA?
A balance check, not a score or verdict.
- Very high net margin: How much of each £1 of sales becomes profit after all costs. Higher = more profitable per sale. and revenue growth: How fast the company's sales grew versus a year ago. versus most large companies
- Forward P/E: Like P/E, but using analysts' forecast of NEXT year's profit instead of last year's. A much lower forward figure implies profits are expected to jump. well below the trailing P/E: Price-to-earnings: the share price divided by yearly profit per share. Lower can mean cheaper; higher often means investors expect fast growth., implying expected further earnings growth
- Leading position in a fast-growing AI accelerator chip category
- High quality and growth factor scores (Q95, G95)
- Valuation remains elevated versus the broader market on a trailing basis
- Low value-factor score (V33) suggests pricing for continued strong growth rather than a bargain screen
- Very low dividend yield: The yearly dividend as a percentage of the share price - roughly the income you'd earn from dividends alone. limits any income component
- Heavy reliance on continued AI capital-spending growth
- Customer concentration among a small number of large cloud/AI companies
- Potential slowdown in AI infrastructure capital spending
- Rising competition from other chip designers and customers' in-house chip efforts
- Export-control and geopolitical restrictions affecting chip sales to some markets
- High valuation leaves less room for disappointment
The write-up's own warning lights — if these start happening, the case above changes.
- A meaningful deceleration in data-centre/AI revenue growth relative to current forward estimates
- Margin compression from pricing competition or rising input costs
- Evidence of major customers materially cutting AI infrastructure budgets
Common questions about NVIDIA
Does NVIDIA pay a dividend?
Yes - NVIDIA currently pays a dividend of about 0.5% a year. Dividends are a share of profit paid to holders; the yield moves with the price and payouts can be cut.
When does NVIDIA report earnings next?
NVIDIA is next scheduled to report results on about 2026-11-17. Report dates are estimates and can move; this is a diary note for when to look, not a forecast of the outcome.
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