NVIDIANVDA -0.86%95 ROE % is 132.26% as of Apr. 2026, which is 191% above its 10-year median of 45.44. GuruFocus rates NVDA with a GF Score™ of 95/100 and a GF Value™ of $349.20 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 1,004 Semiconductors companies, NVIDIA ranks better than 99% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. NVIDIA's annualized net income for the quarter that ended in Apr. 2026 was $233,284 Mil. NVIDIA's average Total Stockholders Equity over the quarter that ended in Apr. 2026 was $176,384 Mil. Therefore, NVIDIA's annualized ROE % for the quarter that ended in Apr. 2026 was 132.26%.
The historical rank and industry rank for NVIDIA's ROE % or its related term are showing as below:
NVDA'
s ROE % Range Over the Past 10 Years
Min: 17.93 Med: 45.44 Max: 121.72
Current: 121.72
During the past 13 years, NVIDIA's highest ROE % was 121.72%. The lowest was 17.93%. And the median was 45.44%.
NVDA's ROE % is ranked better than 99% of 1004
companies
in the Semiconductors industry
Industry Median: 4.55
vs NVDA: 121.72
NVIDIA (NAS:NVDA) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Apr. 2026) net income data. The Revenue data used here is four times the quarterly (Apr. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
NVIDIA ROE % Related Terms
NVIDIA ROE % Historical Data
* Premium members only.
The historical data trend for NVIDIA's ROE % 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.
For the Semiconductors subindustry, NVIDIA's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, NVIDIA's ROE % distribution charts can be found below:
* The bar in red indicates where NVIDIA's ROE % falls into.
* 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Apr. 2026) net income data.
ROE % is displayed in the 30-year financial page.
NVIDIA (NVDA) has a ROE % of 132.26% as of Apr. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on NVIDIA and its competitors. This is 191% above median its historical median of 45.44. Over the past decade, NVIDIA's ROE % has ranged from 17.93 to 121.72. According to the industry distribution chart, NVIDIA ranks #10 out of 1004 companies in the Semiconductors industry, placing it in the top 1%.
Is NVIDIA's ROE % too high?
NVIDIA's current ROE % of 132.26% is 191% above median its 10-year median of 45.44. Over the past 10 years, this metric has ranged from a low of 17.93 to a high of 121.72. The Semiconductors industry median ROE % is 4.55. NVIDIA's value of 132.26% is 2806.8% above this industry median. Based on the distribution chart, NVIDIA ranks #10 out of 1004 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, NVIDIA has a GF Score™ of 95/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does NVIDIA's ROE % compare to AVGO and MU?
According to the Semiconductors industry distribution chart, NVIDIA ranks #10 out of 1004 companies for ROE %. This places NVIDIA in the top 1% of its industry — outperforming the majority of peers. The industry median ROE % is 4.55. NVIDIA's value of 132.26% is 2806.8% above this benchmark. Historically, NVIDIA's own ROE % has ranged from 17.93 to 121.72 over the past decade. While the company's 10-year median is 45.44 vs. the industry median of 4.55, 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 ROE % for a Semiconductors company?
The median ROE % among Semiconductors companies is 4.55, based on 1,004 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NVIDIA's current ROE % of 132.26% is 2806.8% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on NVIDIA and its competitors. For the Semiconductors industry, the median ROE % is 4.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NVIDIA's current ROE % is 132.26%, which is 191% above median its own 10-year median of 45.44. 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 (NVDA) is currently considered Possible Value Trap. The stock's GF Value™ is $349.20, compared to a current price of $194.06 — trading 44.4% below its estimated fair value. The current ROE % is 132.26%, which is 191% above median its 10-year median of 45.44 and 2806.8% above the Semiconductors industry median of 4.55. NVIDIA's overall GF Score™ is 95/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For NVIDIA (NVDA), the current ROE % is 132.26% 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 (NVDA) Overvalued in 2026?
Based on GuruFocus' analysis, NVIDIA stock appears to be undervalued.
The current stock price of $194.06 is trading 44.4% below its estimated GF Value™ of $349.20.
GuruFocus considers NVIDIA to be Possible Value Trap.
Key valuation signals for NVDA:
ROE %: 132.26% (191% above median its 10-year median of 45.44)
GF Value™: $349.20 vs. price of $194.06 (44.4% below fair value)
Industry Position: 2806.8% above the Semiconductors median (#10 of 1004)
No single metric tells the full story. See the NVDA 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.
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