---
title: "Nvidia (NVDA) Fundamentals Report · Feb 8, 2026"
author: "DeepValues Research"
publisher: "DeepValues Research (DeepValues / LuLu Ventures LLC)"
type: "Deep Value Intelligence component report"
ticker: "NVDA"
company: "Nvidia"
sector: "Technology"
industry: "Semiconductors"
wikidata: "https://www.wikidata.org/wiki/Q182477"
wikipedia: "https://en.wikipedia.org/wiki/Nvidia"
date: "2026-02-08"
language: "en"
section: "Company Research"
canonical_url: "https://research.deepvalues.ai/company/nvda/2026-02-08-fundamentals-report/"
markdown_url: "https://research.deepvalues.ai/company/nvda/2026-02-08-fundamentals-report/index.md"
license: "CC BY 4.0"
license_url: "https://creativecommons.org/licenses/by/4.0/"
cite_as: "DeepValues Research, Nvidia (NVDA) Fundamentals Report · Feb 8, 2026, https://research.deepvalues.ai/company/nvda/2026-02-08-fundamentals-report/"
publisher_url: "https://deepvalues.ai"
app: "https://deepvalues.ai"
api: "https://app.deepvalues.ai/developers"
data_note: "Reports are dated snapshots. Current data via the DeepValues API: https://app.deepvalues.ai/developers"
disclaimer: "Educational research, not investment advice."
---
This comprehensive 10-year historical analysis of NVIDIA Corporation (NVDA) is conducted through the lens of Warren Buffett’s value investing methodology, incorporating the most recent data as of **February 8, 2026**.

---

### **1. 10-Year Historical Financial Data (2017–2026E)**
*All figures in USD Billions except per-share data. Data for 2026 is estimated based on Q3 FY2026 results and Q4 guidance.*

| Metric | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026E |
| :--- | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: |
| **Market Price ($)** | 2.50 | 6.00 | 4.00 | 6.00 | 13.00 | 25.00 | 18.00 | 60.00 | 120.0 | **185.4** |
| **Market Cap ($B)** | 60 | 150 | 100 | 150 | 320 | 620 | 450 | 1,500 | 3,000 | **4,514** |
| **P/E Ratio** | 35.0 | 50.0 | 24.0 | 55.0 | 76.0 | 64.0 | 100.0 | 50.5 | 56.6 | **45.9** |
| **P/B Ratio** | 11.0 | 20.0 | 11.0 | 12.0 | 19.0 | 24.0 | 20.0 | 35.0 | 45.0 | **37.9** |
| **ROE (%)** | 32.3 | 40.5 | 49.3 | 25.6 | 29.8 | 44.8 | 17.9 | 69.2 | 95.0 | **112.0** |
| **ROIC (%)** | 27.8 | 34.1 | 40.2 | 20.8 | 23.5 | 34.6 | 15.2 | 54.0 | 75.0 | **84.0** |
| **EPS ($)** | 0.07 | 0.12 | 0.17 | 0.11 | 0.17 | 0.39 | 0.18 | 1.19 | 2.15 | **3.20** |
| **Revenue ($B)** | 6.9 | 9.7 | 11.7 | 10.9 | 16.7 | 26.9 | 27.0 | 60.9 | 96.3 | **145.0** |
| **Gross Margin (%)**| 59.2 | 59.9 | 61.2 | 62.0 | 62.3 | 64.9 | 56.9 | 72.7 | 73.8 | **76.2** |
| **Op. Margin (%)** | 28.0 | 33.0 | 32.0 | 26.0 | 27.0 | 37.0 | 21.0 | 54.0 | 60.0 | **62.0** |
| **Net Income ($B)** | 1.7 | 3.0 | 4.1 | 2.8 | 4.3 | 9.7 | 4.4 | 29.7 | 53.0 | **80.0** |
| **Net Margin (%)** | 24.1 | 31.4 | 35.3 | 25.6 | 25.9 | 36.2 | 16.2 | 48.8 | 55.0 | **55.2** |
| **Total Assets ($B)**| 9.8 | 11.2 | 13.3 | 17.3 | 28.7 | 44.1 | 41.1 | 65.7 | 135.0 | **210.0** |
| **Total Debt ($B)** | 2.0 | 2.0 | 2.0 | 7.0 | 7.0 | 11.0 | 11.0 | 9.7 | 9.7 | **8.4** |
| **Total Equity ($B)**| 5.8 | 7.5 | 9.3 | 12.2 | 16.9 | 26.6 | 22.1 | 42.9 | 66.7 | **119.0** |
| **Free Cash Flow ($B)**| 1.5 | 2.9 | 3.1 | 4.3 | 4.7 | 8.1 | 3.8 | 26.9 | 45.0 | **75.0** |
| **Div. Per Share ($)**| 0.01 | 0.01 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.04 | **0.04** |

---

### **2. Current vs. 10-Year Average Comparison**

| Metric | 10-Year Average | Current (2026E) | Standing vs. Average |
| :--- | :---: | :---: | :--- |
| **P/E Ratio** | ~52.8x | 45.9x | **Lower** (Significant earnings catch-up) |
| **P/B Ratio** | ~23.5x | 37.9x | **Higher** (Premium for IP/Asset-light model) |
| **ROE (%)** | ~51.5% | 112.0% | **Superior** (Efficiency at all-time highs) |
| **Net Margin (%)** | ~35.4% | 55.2% | **Superior** (Massive operating leverage) |
| **Debt-to-Equity** | ~0.30 | 0.07 | **Stronger** (Aggressive deleveraging relative to equity) |

**Trends and Significance:**
*   **Earnings Catch-Up:** While the stock price has risen exponentially, the P/E ratio is currently *lower* than its 10-year average. This indicates that the fundamental growth (EPS) has actually outpaced the market's hype, making the stock "cheaper" on a relative basis than in 2021 or 2023.
*   **Margin Expansion:** Net margins have expanded from a 10-year average of ~35% to 55%. This is a rare feat for a hardware company and suggests NVIDIA is now operating more like a software-monopoly entity.

---

### **3. Warren Buffett Value Investing Analysis**

**Economic Moat:**
NVIDIA possesses a "Wide Moat" characterized by its **CUDA software ecosystem**. Over 5 million developers are locked into NVIDIA’s architecture, making it prohibitively expensive for enterprises to switch to AMD or Intel. Furthermore, their transition into full-stack data center systems (networking + compute) creates a "sticky" ecosystem that mirrors the durable competitive advantages Buffett seeks.

**Financial Strength:**
With a **Debt-to-Equity ratio of 0.07** and over **$48 billion in cash**, NVIDIA’s balance sheet is a fortress. It can self-fund R&D and massive share buybacks without needing external financing, fulfilling Buffett's preference for companies that don't rely on debt.

**Predictable Earnings:**
Historically, NVIDIA was cyclical (gaming/crypto). However, the shift to AI infrastructure has created "Sovereign AI" and "Hyperscaler" demand that appears more structural. While still semi-cyclical, the 10-year trend shows a clear upward trajectory in floor-level earnings.

**Management Performance:**
Jensen Huang is widely considered one of the most effective capital allocators in tech. Moving to a 1-year product cycle (Hopper -> Blackwell -> Rubin) has forced competitors into a perpetual state of "catching up."

---

### **4. Discounted Cash Flow (DCF) Analysis**

**Parameters:**
*   **Base FCF (2026E):** $75.0 Billion
*   **Discount Rate:** 10%
*   **Terminal Growth Rate:** 2.5%
*   **Shares Outstanding:** 24.35 Billion

#### **Scenario 1: CONSERVATIVE (7% Growth)**
*Using the lowest positive FCF growth rate (from 2019).*
*   PV of 10-year FCF: $604 Billion
*   PV of Terminal Value: $778 Billion
*   Total Fair Value: $1,382 Billion
*   **Fair Value Per Share: $56.75**

#### **Scenario 2: AVERAGE (54% Growth)**
*Using the 9-year FCF CAGR.*
*   PV of 10-year FCF: $7,323 Billion
*   PV of Terminal Value: $31,107 Billion
*   Total Fair Value: $38,430 Billion
*   **Fair Value Per Share: $1,578.23** *(Note: This assumes NVDA becomes larger than the entire current global GDP, highlighting the limits of CAGR extrapolation).*

#### **Scenario 3: OPTIMISTIC (85% Growth)**
*Using the average of high-growth years (2018, 2024).*
*   **Fair Value Per Share: >$3,000** *(Highly speculative and likely unsustainable).*

---

### **5. Key Insights & Red Flags**

*   **Red Flag - Valuation Ceiling:** At a $4.5 Trillion market cap, NVIDIA's ability to "double" again is mathematically constrained by the total available global IT spend.
*   **Red Flag - Concentration Risk:** The majority of revenue comes from a handful of Cloud Service Providers (CSPs). Any "CapEx digestion" period among these giants would hit NVDA hard.
*   **Opportunity - Sovereign AI:** Nation-states building their own AI clouds represent a new, non-cyclical customer base.
*   **Insight:** NVIDIA is no longer just a chip maker; it is the "Standard Oil" of the AI era, controlling the "refinery" (compute) and the "pipelines" (networking).

---

### **6. Summary Table**

| Category | Key Metric | Stance |
| :--- | :--- | :--- |
| **Value** | P/E 45.9x vs Avg 53x | **Fairly Valued** |
| **Profitability** | ROE 112% / Net Margin 55% | **Exceptional** |
| **Moat** | CUDA / Spectrum-X Networking | **Wide/Durable** |
| **Growth** | 3-Year Rev CAGR 88% | **Hyper-Growth** |
| **Risk** | Geopolitics / Customer Concentration | **Medium-High** |

---

### **FINAL INVESTMENT STANCE: WATCH**
**Rationale:**
While NVIDIA’s fundamentals are the strongest in the technology sector, the DCF analysis highlights a massive "valuation gap" between conservative historical growth and the current AI-fueled trajectory. At $185.41, the stock is trading significantly above its conservative fair value ($56.75) but appears "cheap" if one believes the 50%+ growth CAGR can continue for another 5 years. For a value investor, the lack of a "Margin of Safety" at the $4.5T market cap level suggests a **WATCH** stance. Investors should wait for a cyclical pullback or "digestion phase" to enter at a price closer to the historical P/B average.

**FINAL INVESTMENT STANCE: WATCH**