NVIDIA Corporation NVDA

Competitive advantage analysis · technology

Corporate Default
Overall moat score
78/100
Strong

Ranked against 65 peers in Semiconductors

About NVIDIA Corporation

NVIDIA Corporation, a computing infrastructure company, provides graphics and compute and networking solutions in the United States, Taiwan, China, Hong Kong, and internationally. It operates through Compute & Networking and Graphics segments. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and artificial intelligence solutions and software and automotive platforms and autonomous and electric vehicle … Full NVDA analysis →

Key strengths

  • Cost Leadership Position Operating margin at 95.4th percentile with strong OpEx control demonstrates cost leadership.
  • ROIC Sustainably Above Peers ROIC at 98.4th percentile exceeds peers and WACC, demonstrating superior capital allocation.

Key risks

  • Revenue Volatility Signals Weak Stickiness Revenue volatility is high (stability score 0.22), suggesting weak customer stickiness.
  • Volatile Margins Suggest Cyclicality Margin volatility is high (stability score 0.32), suggesting cyclical exposure or competitive pressure.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

Select any axis label to open that defense below.

Pricing Power

Moderate
67

Ability to maintain or raise prices without losing volume

Key signals
Margin Level 91/100
Operating Margin
60.4% vs 2.1% median P95
Gross Profit Margin
71.1% vs 51.6% median P86
Margin Stability 32/100
Operating Margin
— vs 10.8% median
STRENGTHS
  • Margins Consistently Above Peers Gross margin at 71.1% (top 14%) and operating margin at 60.4% (top 5%) indicate strong pricing power.
RISKS
  • Volatile Margins Suggest Cyclicality Margin volatility is high (stability score 0.32), suggesting cyclical exposure or competitive pressure.

Ability to deliver products/services at lower cost than competitors

Key signals
OpEx Control 95/100
Operating Margin
60.4% vs 2.1% median P95
SG&A Efficiency 98/100
SG&A / Revenue
2.1% vs 16.4% median P98
STRENGTHS
  • Cost Leadership Position Operating margin at 95.4th percentile with strong OpEx control demonstrates cost leadership.
  • Operating Expense Control OpEx growth is controlled (score 0.95), demonstrating operating leverage.

Customer loyalty, switching costs, recurring revenue

Key signals
Revenue Stability 22/100
Rev Growth YoY
— vs 21.4% median
Cash Reliability 95/100
FCF Margin
44.8% vs 8.5% median P97
Operating Cash Flow Margin
47.6% vs 18.0% median P94
STRENGTHS
  • Cash Generation Consistent Cash generation is consistent (score 0.95), indicating reliable business model.
RISKS
  • Revenue Volatility Signals Weak Stickiness Revenue volatility is high (stability score 0.22), suggesting weak customer stickiness.

Returns on invested capital; how well the company deploys capital

Key signals
ROIC vs WACC Spread 98/100
ROE
101.5% vs 3.1% median P97
ROIC
66.9% vs 1.7% median P98
Return Durability 25/100
ROE
— vs 16.7% median
STRENGTHS
  • ROIC Sustainably Above Peers ROIC at 98.4th percentile exceeds peers and WACC, demonstrating superior capital allocation.

Financial strength, debt serviceability, ability to weather downturns

Key signals
Debt Serviceability 70/100
Net Debt/EBITDA
-0.01x vs -0.16x median P46
Interest Coverage Ratio
547.14 vs 2.64 median P95
Liquidity Buffer 65/100
Current Ratio
3.91x vs 3.09x median P65
Cash Generation 95/100
FCF Margin
44.8% vs 8.5% median P97
Operating Cash Flow Margin
47.6% vs 18.0% median P94
STRENGTHS
  • Strong Interest Coverage & Conservative Leverage Debt serviceability is strong (score 0.70), with robust interest coverage.
  • Consistent Cash Generation Cash generation is strong and consistent (score 0.95).
  • Strong Liquidity Buffer Liquidity position is strong (score 0.65), providing operational cushion.

Market share, brand strength, distribution network

Key signals
Profitability at Scale 91/100
Operating Margin
60.4% vs 2.1% median P95
Gross Profit Margin
71.1% vs 51.6% median P86
Operating Leverage 88/100
Operating Margin
— vs -3.3% median
STRENGTHS
  • Scale Supporting Profitability Profitability at scale is strong (score 0.91), demonstrating competitive advantages.
  • Operating Leverage in Effect Operating leverage is evident (score 0.88), with margins expanding over time.

Where NVDA ranks in Semiconductors

NVIDIA Corporation ranks #6 of 66 scored companies in Semiconductors by moat score — the top 9%. The widest moat in the group is NVE Corporation (NVEC) at 86/100.

# Company Moat score Rating
2 Taiwan Semiconductor Manufactur TSM 84/100 Strong
3 Cirrus Logic, Inc. CRUS 82/100 Strong
4 Rambus, Inc. RMBS 80/100 Strong
5 Micron Technology, Inc. MU 78/100 Strong
6 NVIDIA Corporation NVDA 78/100 Strong
7 Broadcom Inc. AVGO 76/100 Strong
8 Arm Holdings plc ARM 75/100 Strong
9 Monolithic Power Systems, Inc. MPWR 75/100 Strong
10 Credo Technology Group Holding CRDO 73/100 Moderate

See every General Corporate company ranked by moat score →

How NVDA scores on the Corporate Default defenses

Pricing Power

Score 67 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 97 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 66 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 76 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 74 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 90 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding NVDA's moat

What is NVIDIA Corporation's moat score?

NVIDIA Corporation (NVDA) scores 78 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as strong. It ranks #6 of 66 scored companies in Semiconductors, the top 9%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 65 companies in Semiconductors. Its strongest defense is Cost Advantage (97/100) and its weakest is Customer Stickiness (66/100).

How does NVIDIA Corporation compare with other Semiconductors companies?

NVIDIA Corporation ranks #6 of 66 scored companies in Semiconductors by moat score. The widest moat in Semiconductors is NVE Corporation (NVEC) at 86/100. The companies ranked closest are Micron Technology, Inc. (MU) at 78 just above it and Broadcom Inc. (AVGO) at 76 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 65 companies in Semiconductors. The defenses are then weighted to produce the overall score out of 100.

Why is NVIDIA Corporation scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for NVIDIA Corporation?

The Corporate Default template measures 6 defenses, and NVDA scores: Pricing Power (67), Cost Advantage (97), Customer Stickiness (66), Capital Efficiency (76), Resilience (74), Scale & Market Position (90). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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