NVIDIAHAM:NVD -2.36%96 Operating Margin % is 65.60% as of Apr. 2026, which is 100% above its 10-year median of 32.76. GuruFocus rates HAM:NVD with a GF Score™ of 96/100 and a GF Value™ of €309.64 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 1,023 Semiconductors companies, NVIDIA ranks better than 99.51% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. NVIDIA's Operating Income for the
three
months ended in Apr. 2026 was €45,773 Mil. NVIDIA's Revenue for the
three
months ended in Apr. 2026 was €69,781 Mil. Therefore, NVIDIA's Operating Margin % for the quarter that ended in Apr. 2026 was 65.60%.
Good Sign:
NVIDIA Corp operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for NVIDIA's Operating Margin % or its related term are showing as below:
HAM:NVD'
s Operating Margin % Range Over the Past 10 Years
Min: 20.68 Med: 32.76 Max: 64.02
Current: 64.02
HAM:NVD's Operating Margin % is ranked better than 99.51% of 1023
companies
in the Semiconductors industry
Industry Median: 5.18
vs HAM:NVD: 64.02
NVIDIA's 5-Year Average Operating Margin % Growth Rate was 20.40% per year.
NVIDIA's Operating Income for the
three
months ended in Apr. 2026 was €45,773 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Apr. 2026 was €138,777 Mil.
NVIDIA (HAM:NVD) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
NVIDIA Operating Margin % Related Terms
NVIDIA Operating Margin % Historical Data
* Premium members only.
The historical data trend for NVIDIA's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
HAM:NVD vs AVGO, MU, AMD: Operating Margin % Comparison
For the Semiconductors subindustry, NVIDIA's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
NVIDIA Operating Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, NVIDIA's Operating Margin % distribution charts can be found below:
* The bar in red indicates where NVIDIA's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
NVIDIA's Operating Margin % for the fiscal year that ended in Jan. 2026 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NVIDIA (HAM:NVD) has a Operating Margin % of 65.60% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on NVIDIA and its competitors. This is 100% above median its historical median of 32.76. Over the past decade, NVIDIA's Operating Margin % has ranged from 20.68 to 64.02. According to the industry distribution chart, NVIDIA ranks #5 out of 1023 companies in the Semiconductors industry, placing it in the top 0.5%.
Is NVIDIA's Operating Margin % too high?
NVIDIA's current Operating Margin % of 65.60% is 100% above median its 10-year median of 32.76. Over the past 10 years, this metric has ranged from a low of 20.68 to a high of 64.02. The Semiconductors industry median Operating Margin % is 5.18. NVIDIA's value of 65.60% is 1166.4% above this industry median. Based on the distribution chart, NVIDIA ranks #5 out of 1023 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, NVIDIA has a GF Score™ of 96/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does NVIDIA's Operating Margin % compare to AVGO and MU?
According to the Semiconductors industry distribution chart, NVIDIA ranks #5 out of 1023 companies for Operating Margin %. This places NVIDIA in the top 1% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.18. NVIDIA's value of 65.60% is 1166.4% above this benchmark. Historically, NVIDIA's own Operating Margin % has ranged from 20.68 to 64.02 over the past decade. While the company's 10-year median is 32.76 vs. the industry median of 5.18, NVIDIA has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Semiconductors company?
The median Operating Margin % among Semiconductors companies is 5.18, based on 1,023 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NVIDIA's current Operating Margin % of 65.60% is 1166.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on NVIDIA and its competitors. For the Semiconductors industry, the median Operating Margin % is 5.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NVIDIA's current Operating Margin % is 65.60%, which is 100% above median its own 10-year median of 32.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NVIDIA stock overvalued right now?
Based on GuruFocus' analysis, NVIDIA (HAM:NVD) is currently considered Possible Value Trap. The stock's GF Value™ is €309.64, compared to a current price of €173.82 — trading 43.9% below its estimated fair value. The current Operating Margin % is 65.60%, which is 100% above median its 10-year median of 32.76 and 1166.4% above the Semiconductors industry median of 5.18. NVIDIA's overall GF Score™ is 96/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For NVIDIA (HAM:NVD), the current Operating Margin % is 65.60% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is NVIDIA (HAM:NVD) Overvalued in 2026?
Based on GuruFocus' analysis, NVIDIA stock appears to be undervalued.
The current stock price of €173.82 is trading 43.9% below its estimated GF Value™ of €309.64.
GuruFocus considers NVIDIA to be Possible Value Trap.
Key valuation signals for HAM:NVD:
Operating Margin %: 65.60% (100% above median its 10-year median of 32.76)
GF Value™: €309.64 vs. price of €173.82 (43.9% below fair value)
Industry Position: 1166.4% above the Semiconductors median (#5 of 1023)
No single metric tells the full story. See the HAM:NVD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nvidia is a leading developer of graphics processing units. Traditionally, GPUs were used to enhance the experience on computing platforms, most notably in gaming applications on PCs. GPU use cases have since emerged as important semiconductors used in artificial intelligence to run large language models. Nvidia not only offers AI GPUs, but also a software platform, Cuda, used for AI model development and training. Nvidia is also expanding its data center networking solutions, helping to tie GPUs together to handle complex workloads.
96GF Score
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