NVIDIANVDA -1.39%96 3-Year ROIIC % is 110.21 as of Jan. 2026, which is 14% below its 10-year median of 127.92. GuruFocus rates NVDA with a GF Score™ of 96/100 and a GF Value™ of $354.30 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 997 Semiconductors companies, NVIDIA ranks better than 90.47% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
NVIDIA's 3-Year ROIIC % for the quarter that ended in Jan. 2026 was 110.21%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for NVIDIA's 3-Year ROIIC % or its related term are showing as below:
NVDA's 3-Year ROIIC % is ranked better than 90.47% of 997
companies
in the Semiconductors industry
Industry Median: -0.2
vs NVDA: 110.21
NVIDIA (NAS:NVDA) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
NVIDIA 3-Year ROIIC % Related Terms
NVIDIA 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for NVIDIA's 3-Year ROIIC % 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 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, NVIDIA's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where NVIDIA's 3-Year ROIIC % falls into.
NVIDIA's 3-Year ROIIC % for the quarter that ended in Jan. 2026 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 110672.4856 (Jan. 2026) - 5577 (Jan. 2023) )
/
( 118642 (Jan. 2026) - 23280 (Jan. 2023) )
=
105095.4856
/
95362
=
110.21%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
NVIDIA (NVDA) has a 3-Year ROIIC % of 110.21 as of Jan. 2026. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on NVIDIA and its competitors. This is 14% below median its historical median of 127.92. Over the past decade, NVIDIA's 3-Year ROIIC % has ranged from 11.58 to 368.40. According to the industry distribution chart, NVIDIA ranks #95 out of 997 companies in the Semiconductors industry, placing it in the top 9.5%.
Is NVIDIA's 3-Year ROIIC % too high?
NVIDIA's current 3-Year ROIIC % of 110.21 is 14% below median its 10-year median of 127.92. Over the past 10 years, this metric has ranged from a low of 11.58 to a high of 368.40. Based on the distribution chart, NVIDIA ranks #95 out of 997 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 3-Year ROIIC % compare to AVGO and MU?
According to the Semiconductors industry distribution chart, NVIDIA ranks #95 out of 997 companies for 3-Year ROIIC %. This places NVIDIA in the top 10% of its industry — outperforming the majority of peers. Historically, NVIDIA's own 3-Year ROIIC % has ranged from 11.58 to 368.40 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a Semiconductors company?
A good 3-Year ROIIC % depends on the Semiconductors industry context. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on NVIDIA and its competitors. NVIDIA's current 3-Year ROIIC % is 110.21, which is 14% below median its own 10-year median of 127.92. 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 $354.30, compared to a current price of $194.83 — trading 45% below its estimated fair value. The current 3-Year ROIIC % is 110.21, which is 14% below median its 10-year median of 127.92. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For NVIDIA (NVDA), the current 3-Year ROIIC % is 110.21 as of Jan. 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 $194.83 is trading 45% below its estimated GF Value™ of $354.30.
GuruFocus considers NVIDIA to be Possible Value Trap.
Key valuation signals for NVDA:
3-Year ROIIC %: 110.21 (14% below median its 10-year median of 127.92)
GF Value™: $354.30 vs. price of $194.83 (45% below fair value)
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.
96GF Score
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