Nvidia has transformed its financial standing dramatically over a short period. The company ended 2022 with a market capitalization of $359.5 billion and a share price of $14.61. By the close of 2025, its market cap reached $4.5 trillion, with shares trading at $186.50.
This surge has reshaped market indices. Nvidia now accounts for 16.6% of the tech sector, 13.3% of the Nasdaq-100, and 7.1% of the S&P 500.
Nvidia converts more than half of its revenue into after-tax profit. It generates over $2 million in net profit per employee on average. The company spent $36.27 billion on stock buybacks for the nine months ended October 26, 2025, compared to $4.75 billion in stock-based compensation.
Currently the fourth-most profitable U.S. company, Nvidia reported $99.2 billion in trailing-12-month net income. Alphabet leads with $124.3 billion. Nvidia is growing much faster than Alphabet and is expected to overtake it in profitability either this year or next.
The company's Rubin semiconductor chip architecture, successor to Blackwell, is cited as a key factor. Nvidia stated at CES earlier this month that it would exceed prior estimates of $500 billion in Blackwell and Rubin orders and revenue through the end of 2026.
Over the trailing twelve months, Nvidia generated $0.53 in after-tax net income per dollar of revenue. If it maintains this conversion rate, the $500 billion revenue projection could translate to $250 billion in net income.
Nvidia trades at roughly 40 times forward earnings. The Motley Fool Stock Advisor analyst team identified 10 stocks they believe are better buys now, and Nvidia was not among them. The team noted that Nvidia was listed on April 15, 2005, and a $1,000 investment then would now be worth $1,141,628.