Capital · Position · Nasdaq, NVDA
NVIDIA.
One Of Five.
NVIDIA designs graphics processing units, networking hardware and the CUDA software stack used for accelerated computing. Its chips are manufactured by outside foundries and sold as chips, boards and full server systems.
One of five single company positions in the book, alongside XEQT. NVIDIA designs graphics processing units, networking hardware and the CUDA software stack used for accelerated computing. Its chips are manufactured by outside foundries and sold as chips, boards and full server systems. Held, not traded. Not advice.
What NVIDIA Is
The company itself, before anything about the book.
What It Does
NVIDIA designs graphics processing units, networking hardware and the CUDA software stack used for accelerated computing. Its chips are manufactured by outside foundries and sold as chips, boards and full server systems.
How It Makes Money
NVIDIA reports two segments, Compute and Networking, and Graphics. Revenue is described across market platforms including Data Center, Gaming, Professional Visualization and Automotive, with Data Center covering AI training and inference systems.
Who Buys It
Cloud service providers, server makers and system integrators, add-in board partners, enterprises, research institutions and automakers.
Listing
Nasdaq, NVDA
Where It Sits In The Book
One line of a published portfolio, not a pick.
The Sleeve
Stocks and ETFs are forty percent of the book. An all equity index fund does the market exposure and five single company positions sit on top of it.
The Job Of This Half
Compute. The published rule is that each of the five has to be a sentence that can be defended, and if the sentence cannot be said the position does not belong.
Turnover
These are held. The turnover in this sleeve is close to nothing, which is the point of splitting it this way rather than running one concentrated book and hoping.
The Last Full Year
NVIDIA’s fiscal year ends in late January, so FY2026 is substantially calendar 2025. Figures from the Form 10-K filed 25 February 2026.
Revenue, FY2026
Up 65% from $130.5b in FY2025, which was itself up from $60.9b in FY2024.
Operating Margin
$130.387b of operating income on $215.938b of revenue. Computed, NVIDIA does not state a margin.
Free Cash Flow
The company’s own figure, against $60.7b in FY2025. Operating cash flow was $102.718b.
Diluted EPS
Against $2.94 in FY2025. Net income $120.067b.
Where The Revenue Comes From
The segments, the mix, and which line is actually carrying it. FY2026, the fifty two weeks ended 25 January 2026.
Data Center Is The Company
Data Center revenue was $193.737b of the $215.938b total, up 68%. Inside it, Compute was $162.361b and Networking $31.376b, and Networking grew fastest at 142%. Everything else added together is $22.201b.
The Other Four Lines
Gaming $16.042b, up 41%. Professional Visualization $3.191b, up 70%. Automotive $2.349b, up 39%. OEM and other $619m, up 59%. Real businesses, and rounding errors next to Data Center.
Two Segments On Paper
Compute and Networking booked $193.479b of revenue and $130.141b of segment operating income. Graphics booked $22.459b and $9.156b. From Q1 FY2027 the market platform reporting changed to Data Center and Edge Computing, so the old five line split does not continue.
Where It Ships
United States $149.617b, Taiwan $42.345b, China including Hong Kong $19.677b, other $4.299b. Non US revenue fell from 41% of the total to 31% in one year.
Two Customers, Thirty Six Percent
Two direct customers were 22% and 14% of FY2026 revenue. At 26 July 2026 five direct customers were 22%, 14%, 13%, 11% and 10% of accounts receivable.
What It Does With The Cash
Capital allocation is the decision management actually controls.
It Buys Back More Than It Spends
Capital expenditure was $6.042b. Share repurchases were $40.086b of cash, 282 million shares. Dividends were $974m. The company put nearly seven dollars into its own stock for every dollar into property and equipment.
The Authorisation Is Larger Than The Spend
$60b added on 26 August 2025, leaving $58.5b authorised at year end. A further $80b added on 18 May 2026, leaving $99.3b authorised at 26 July 2026.
The Dividend Moved Twenty Five Fold
The quarterly dividend was $0.01 a share through Q1 FY2027 and was raised to $0.25 in Q2 FY2027. Dividends paid in that single quarter were $6.0b against $244m a year earlier.
The Balance Sheet
Cash, equivalents and marketable securities $62.556b. Total debt carrying value $8.468b across seven note series maturing 2026 to 2060. Shareholders’ equity $157.293b on total assets of $206.803b.
The Last Reported Quarter
Q2 FY2027, the three months ended 26 July 2026, with the guidance quoted rather than paraphrased.
Revenue Doubled Again
Revenue $96.221b, up 106% year over year and 18% on the quarter. Data Center was $89.023b of it, up 117%.
Margin Went Up, Not Down
GAAP gross margin 75.0% against 72.4% a year earlier, which the company attributes to mix from Blackwell Ultra. Operating income $63.734b, a 66.2% margin, computed.
Diluted EPS $2.46
Against $1.08 a year earlier. Operating cash flow for the six months was $74.421b.
The Guidance, In Their Words
For Q3 FY2027: “Revenue is expected to be $108.0 billion, plus or minus 2%” and “GAAP and non-GAAP gross margins are expected to be 74.0%, plus or minus 50 basis points”. And this: “NVIDIA is not assuming any Data Center compute revenue from China in its outlook.”
The Case Against
The strongest arguments not to hold it, with figures attached and at the same weight as everything above.
China Is Written Off In The Company’s Own Words
The 10-K says: “As of the end of fiscal year 2026, we were effectively foreclosed from competing in China’s data center computing/compute market.” A $4.5b charge was taken in Q1 FY2026 on H20 inventory and purchase obligations. Roughly $60m of H20 revenue was generated under the August 2025 licences. China revenue fell from $25.048b to $19.677b.
The Concentration Is The Business Model
Two direct customers at 22% and 14% of revenue is not a diversified order book. The 10-K carries the risk under its own heading, and the accounts receivable concentration is heavier still.
Commitments Made Before The Orders Land
At 25 January 2026 the company carried $95.2b of manufacturing, production and long term supply and capacity commitments, $27.0b of multi year cloud service commitments, $11.4b of investment commitments and lead times the filing describes as “more than 12 months”. The warranty accrual went from $306m to $1.290b to $2.807b in two years.
A Guarantee The Size Of A Year Of Profit
An 8-K filed 17 August 2026 discloses residual value guaranty agreements on leases for about 4.25 gigawatts of capacity, with NVIDIA’s aggregate payment obligation capped at $105b, treated as an off balance sheet arrangement.
It Does Not Own The Factories
The 10-K names TSMC and Samsung for foundry, SK Hynix, Micron and Samsung for memory, and Hon Hai, Wistron and Fabrinet for assembly, and states the supply chain is mainly concentrated in Asia.
Company facts from each company’s most recent annual report on Form 10-K, read September 2026. No price, market cap or forecast appears on this page. Live prices for every position are on the investing page. Every figure on this page comes from a filing with the US Securities and Exchange Commission, read on 4 September 2026. NVIDIA: Form 10-K for the year ended 25 January 2026 filed 25 February 2026, Form 10-Q for the quarter ended 26 July 2026, the Q2 FY2027 earnings release and CFO commentary, and the Form 8-K filed 17 August 2026. Tesla: Form 10-K for the year ended 31 December 2025 filed 29 January 2026, the Q4 2025 and Q2 2026 shareholder updates, and the Form 10-Q for the quarter ended 30 June 2026. Apple: Form 10-K for the year ended 27 September 2025 filed 31 October 2025, and the Q2 and Q3 fiscal 2026 earnings releases. Amazon: Form 10-K for the year ended 31 December 2025 filed 5 February 2026, the Q4 2025 and Q2 2026 earnings releases, and the Form 10-Q for the quarter ended 30 June 2026. Palantir: Form 10-K for the year ended 31 December 2025 filed 17 February 2026, and the Q4 2025 and Q2 2026 earnings releases. Where a figure is a ratio the company does not itself publish, the line says “computed”. No share price, market capitalisation, valuation multiple, price target or analyst view appears anywhere on this page, because every one of those needs a price and a price printed into a static page is wrong within the hour. Live prices for every position are on the investing page. Not financial advice.
The Other Four
The rest of the concentrated half, one page each.
Tesla · TSLA
Tesla designs, manufactures and sells electric vehicles and battery energy storage systems.
Apple · AAPL
Apple designs and sells smartphones, personal computers, tablets, wearables and accessories, and sells related software and services.
Amazon · AMZN
Amazon operates online and physical stores, a marketplace for third party sellers and a logistics network.
Palantir · PLTR
Palantir builds software platforms that integrate an organisation’s data and connect it to operational decisions.
XEQT · The Index Half
The all equity index fund the five positions sit on top of.
Common Questions
NVIDIA designs graphics processing units, networking hardware and the CUDA software stack used for accelerated computing. Its chips are manufactured by outside foundries and sold as chips, boards and full server systems.
NVIDIA reports two segments, Compute and Networking, and Graphics. Revenue is described across market platforms including Data Center, Gaming, Professional Visualization and Automotive, with Data Center covering AI training and inference systems.
It sits in the concentrated half of the stocks sleeve under compute. The published rule for that half is that each position has to be a sentence that can be defended, and the sleeve is held rather than traded.
Revenue is concentrated in a small number of large direct customers. US export controls restrict sales of advanced chips into China. Depends on third party foundry and advanced packaging capacity it does not own. These are structural risks the company itself discloses, not a forecast.
$215.9b in FY2026, the fifty two weeks ended 25 January 2026, per the company’s own filing with the SEC. Up 65% from $130.5b in FY2025, which was itself up from $60.9b in FY2024.
China Is Written Off In The Company’s Own Words. The Concentration Is The Business Model. Commitments Made Before The Orders Land. A Guarantee The Size Of A Year Of Profit. It Does Not Own The Factories. Each of those is set out with figures on this page, taken from the company’s filings rather than from an opinion about them.
No. This is a published position with the reasoning attached, which is a different thing. Nothing here is financial advice and Cody Wise is not a licensed advisor.
One Line Of The Book.
The Rest Is Published Too.
Every position, the split behind them, and live prices on all of it.
Not financial advice.