Quick Read – NVDA’s fabless model converted hyperscaler AI spending into free cash flow that tripled from $27B to $97B in just two years. – NVDA’s 55.6% net margin and 92.2% ROIC reflect full-stack pricing power that AMD and AVGO have not replicated at scale. – Despite absorbing…
$4.5B China inventory charge, FY2026 free cash flow still grew 59%, making any China reopening unpriced upside. – I keep buying NVIDIA (NASDAQ:NVDA) because it turns the world’s largest capital spending cycle into cash faster than I can decide where to redeploy the dividend. Every dollar hyperscalers pour into AI factories flows across NVIDIA’s fabless model as top-line revenue without dragging concrete, power, or square footage onto its balance sheet
That is the machine I keep funding. The receipts back the story. Free cash flow went from $27.0B in fiscal 2024 to $60.9B in fiscal 2025 to $96.7B in fiscal 2026.
Then Q1 FY2027 landed $48.55B in free cash flow in a single quarter, on revenue of $81.61B, up 85.2% year over year. Data Center revenue alone hit $75.25B, a gain of 92%, with the networking piece rising 199%. That is operational leverage doing exactly what a fabless architect is supposed to do: capture customer capex as revenue while research and administrative overhead stays comparatively fixed.