NVIDIA Corp. (NASDAQ:NVDA)

The data reveals several noteworthy trends in the financial performance and market valuation over the examined periods.

Share Price

The share price exhibited significant volatility initially, with values fluctuating between 0.21 US$ and 0.50 US$ from 2005 to 2008. From 2009 to 2015, the share price generally increased gradually, ranging between 0.25 US$ and 2.57 US$. A pronounced upward trajectory is evident from 2016 onwards, with the share price accelerating dramatically, reaching 131.28 US$ by 2025. This indicates a substantial growth in market valuation, especially in the later years.

Operating Profit per Share (OPPS)

The operating profit per share started at a low base of 0.01 US$ in 2005 and showed marginal increases with some fluctuations through 2014, generally staying below 0.16 US$. Post-2015, there is a clear positive trend, with OPPS rising sharply to a peak of 3.34 US$ by 2025. The growth becomes particularly notable between 2018 and 2025, reflecting considerable improvement in operating profitability per share.

Price-to-Operating Profit (P/OP) Ratio

The P/OP ratio fluctuates considerably across the timeline. Early periods record moderate ratios ranging roughly from 12 to 38, with some missing values complicating continuity. Notably, the ratio spikes significantly after 2016, reaching values as high as 136.19 in 2023, implying rapidly rising share prices compared to operating profits. While the P/OP ratio drops somewhat thereafter to 39.33 by 2025, it remains elevated compared to historical levels. This pattern suggests investor expectations may have outpaced actual profitability gains during those years, but the ratio’s decline in the latest period could indicate a market correction or improved earnings alignment.

In summary, the share price and operating profit per share both display strong growth in recent years, with operating profit growth accelerating after 2015. The P/OP ratio’s considerable volatility and elevated values in the late years suggest periods when market optimism or speculation heavily influenced valuation relative to operating profits. The recent moderation in the P/OP ratio coupled with continued profitability growth points to a more balanced valuation environment.