NVIDIA Corporation maintains its leadership in programmable graphics processors and software development. The company has launched the DRIVE AGX Thor developer kit for autonomous vehicles and formed a strategic collaboration with RealSense, Inc. to enhance robotics platforms, underscoring its commitment to innovation and industry advancement.
NVIDIA Corporation is the world leader in the design, development, and marketing of programmable graphics processors and associated software. The company's net sales are primarily derived from computing and networking solutions, accounting for 77.8% of total sales. These solutions include data center platforms and infrastructure, Ethernet interconnect solutions, high-performance computing solutions, platforms and solutions for autonomous and intelligent vehicles, enterprise artificial intelligence infrastructure, cryptocurrency mining processors, embedded computer boards for robotics, and tools for teaching, learning, and artificial intelligence development.
The remaining 22.2% of net sales come from graphics processors designed for PCs, game consoles, video game streaming platforms, workstations, and other devices under brands such as GeForce, NVIDIA RTX, and Quadro. NVIDIA also offers laptops, desktops, gaming computers, computer peripherals like monitors, mice, joysticks, and remote controls, software for visual and virtual computing, platforms for automotive infotainment systems, and cloud collaboration platforms.
The company's net sales are distributed across various industries, with data storage making up the majority - 78%, gaming 17.1%, professional visualization 2.5%, automotive 1.8%, and other sectors 0.6%. Geographically, net sales are divided among the US (44.3%), Taiwan (22%), China (16.9%), and other regions (16.8%).
Significant product launch
NVIDIA has globally launched the DRIVE AGX Thor developer kit, providing advanced tools for automotive developers to accelerate the design and deployment of autonomous vehicles and intelligent mobility solutions. Built on the Blackwell architecture and Arm Neoverse V3AE CPUs, and powered by the DriveOS 7 software stack, the kit is engineered for modern AV workloads including generative AI, vision, and language models.
It offers extensive automotive-grade I/O for sensors and interfaces, supporting stringent safety and cybersecurity standards (ISO 26262 and ISO 21434). Leading car makers and AV firms—such as BYD, Volvo, Xiaomi, Aurora, and PlusAI—have adopted DRIVE AGX Thor. With two kit versions for bench and in-vehicle development, and broad ecosystem support, NVIDIA is empowering the industry to create safer, smarter vehicles using a scalable AI-defined platform.
Strategic collaboration
NVIDIA and RealSense, Inc. forged a pioneering collaboration to accelerate the era of physical AI by integrating RealSense’s advanced D555 depth-sensing cameras with NVIDIA’s state-of-the-art robotics platforms, including Jetson Thor, Isaac Sim, and Holoscan Sensor Bridge. This integration delivers high-fidelity perception, real-time sensor fusion, and powerful AI compute capabilities to humanoid and autonomous mobile robots, making robotics development faster and more scalable.
By combining NVIDIA’s robust simulation and computing solutions with RealSense’s perception technologies, the partnership bridges the gap between AI prototyping and production, enabling safer, more intelligent machines across manufacturing, logistics, and healthcare. NVIDIA sees this alliance as central to creating the ecosystem required for large-scale physical AI deployment, anchoring its leadership in powering the next generation of smart, autonomous robots.
Steady long-term performance
NVIDIA posted a revenue CAGR of 69.3% over FY 22-25, reaching $130bn, driven by driven by accelerating AI adoption, data center infrastructure buildout, and leadership in high-performance computing. EBIT increased at a CAGR of 100.9% to $81.5bn in FY 25, with margins expanding from 37.3% to 62.4%, benefited from higher sales of advanced products at premium pricing. Net income rose at a CAGR of 95.5% to $72.9bn in FY 25.
FCF witnessed robust growth over the last three years, reaching $44.3bn in FY 25 from $6.6bn in FY 22. In addition, cash and cash equivalent also rose impressively from $2bn to $8.6bn. Total debt declined from $11.8bn to $10.3bn. This resulted in the gearing ratio improving from 44.5% to 12.9%. Moreover, the ROE also rose from 44.8% in FY 22 to 119.2% in FY 25.
In comparison, Broadcom Inc., a local peer, reported a revenue CAGR of 23.4% to $51.6bn in FY 24. EBIT rose at a CAGR of 21.3% to $15.5bn in FY 24. However, net income decreased at a CAGR of minus 4.4% to $5.9bn in FY 24.
Favorable outlook amongst analysts
Over the past year, the company's stock has delivered robust returns of approximately 43.7%. In comparison, Broadcom’s stock delivered higher returns of 86.7% over the same period.
NVIDIA is currently trading at a P/E of 43.3x, based on the FY 26 estimated EPS of $4.2, which is lower than its 3-year historical average of 71.2x and that of Broadcom’s P/E of 66.9x. Likewise, in terms of EV/EBIT, the company is currently trading at 34.8x, based on the estimated EBIT of $124.9bn in FY 26, which is higher than its 3-year historical average of 44.5x but lower than Broadcom (35.3x).
NVIDIA is largely liked by the 66 analysts who monitor the stock, with 60 having ‘Buy’ ratings and six having “Hold” ratings, with an average target price of $194.2, implying 6.9% upside potential from its current price.
Looking ahead, analysts anticipate revenue CAGR of 33.2% over FY 25-28, reaching $308.7bn in FY 28. In addition, analysts expect EBIT CAGR of 31.8% to $198.8bn, with a margin of 64.4% in FY 28. Net income is estimated to rise at a CAGR of 30.3% to $161.1m, with EPS growing from $2.9 to $6.7 in FY 28. Likewise, analysts estimate an EBIT CAGR of 24.4% and a net profit CAGR of 82.6% for Broadcom over FY 24-27.
Overall, the company’s strategic initiatives, including the launch of the DRIVE AGX Thor developer kit and collaboration with RealSense, Inc., highlight its commitment to innovation and industry leadership. With a strong focus on advancing autonomous vehicles and robotics, NVIDIA is well-positioned to drive future growth and maintain its competitive edge in the technology sector.
However, NVIDIA faces risks including high market volatility due to its outsized influence on indices, overdependence on artificial intelligence euphoria, macroeconomic uncertainty from possible Fed rate changes, and vulnerability if technology sector sentiment deteriorates.
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