NVIDIA Corporation FY2024

Financial Analysis Report

by EzTradingTech

Executive Summary

NVIDIA's fiscal year 2024 was a period of transformational, historic growth, cementing its position as the undisputed leader in the AI revolution. The company exhibits unprecedented financial strength, profitability, and market dominance.

Key Findings

126%

Revenue Growth

YoY revenue explosion driven by insatiable Data Center demand for AI accelerators.

72.7%

Gross Margin

Extraordinary margin expansion from 56.9%, indicating immense pricing power.

4.94

Current Ratio

A fortress balance sheet with exceptional liquidity and low financial risk.

69.8%

Return on Equity

Astronomical returns, up from 16.8%, showcasing peak operational efficiency.

Financial Performance

Income Explosion

Comparison of FY2023 vs. FY2024 ($ in Billions)

FY2024 Revenue Mix

Dominated by the Data Center segment

Key Financial Indicators

48.9%

Net Profit Margin

FY2023: 16.2%

45.2%

Return on Assets

FY2023: 10.0%

4.46

Quick Ratio

FY2023: 3.02

0.35

Debt-to-Asset

Lower = Less Risk

$28.1B

Operating Cash Flow

FY2023: $5.6B

Industry Peer Comparison

NVIDIA is not just outperforming peers; it's operating in a different league.

Areas of Concern & Risks

Revenue Concentration

Data Center now accounts for 78% of revenue. Over-reliance on a single, hot segment and a few large cloud customers presents significant risk if AI spending cools.

Geopolitical Headwinds

U.S. export restrictions to China remain a major source of uncertainty, potentially capping growth in a historically significant market.

Competitive Landscape

Rivals like AMD and major customers (Google, Amazon) are aggressively developing their own AI chips, threatening NVIDIA's long-term dominance.

Strategic Recommendations

Diversify Revenue

Aggressively expand into emerging AI markets like Automotive, Robotics, and Sovereign AI to reduce dependency on cloud providers.

Deepen The Moat

Intensify R&D on the CUDA software platform. The ecosystem is the ultimate defense, making it prohibitively expensive for developers to switch.

Disciplined Capital Use

Continue robust share buybacks and dividends while maintaining a large cash reserve for strategic R&D and potential acquisitions.