By Suraj Santlani
Publication Date: 2026-10-18 14:34:00
NVIDIA Corporation (NASDAQ:NVDA) closed at $217.23 on October 15. The stock has returned 9.52% over the last six months, compared to a 15.4% return for the Insider Monkey Billionaire Index and 11.4% for the State Street SPDR S&P 500 ETF Trust.
NVIDIA designs the processors that most artificial intelligence work runs on. It is the largest company in the world by market value. It has also been one of the weaker performers among the companies that supply it. Over the past year, the stock rose 16.48%. Taiwan Semiconductor, which builds its chips, rose 43.10% over the same stretch. Micron, which supplies its memory, rose 360.14%. That is an odd result for the company at the centre of the story.
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Nothing Is Wrong With the Business:
Revenue in the most recent quarter was 105.9% higher than a year earlier, and earnings grew faster still. Growth usually slows as a company gets larger, because each new dollar has to be won against a bigger base. NVIDIA doubled anyway, which is not what scale normally allows.Earnings outrunning sales is the part that matters more, because it means the cost of producing that revenue did not rise as fast as the revenue did. The expensive part of this business is designing the chip, and that is paid for once, however many are sold. The building is left to someone else….
