Analysis of NVIDIA’s Financial Development Status and Operational Strategy

Abstract

This research is focused on the current business strategies of NVIDIA, the USA’s biggest tech company as of 2025. Analysis was done by looking at the company’s balance sheet, and conducting horizontal & vertical analysis to find the business’s health by looking at various ratios. Furthermore, suggestions were proposed to alter the company’s current strategies in order to further boost profits and maintain business in the long run. It was concluded that NVIDIA had very high liquidity with lump sums of cash, as well as using little debt for financing. Additionally, its primary manufacturing plants being overseas and its primary customer outside the US being China, which could be a problem long-term as America tightens its foreign policy and switches to domestic production. NVIDIA can leverage debt spending and use its cash to invest in the future such as research & development into broadening its product line, or achieving the same by partnering with other companies and making acquisitions, meanwhile shifting to domestic production. This paper provides valuable insight into NVIDIA’s financial stance and related issues that could arise in the future.