NVIDIA Corp. (NASDAQ:NVDA)

Market (Fair) Value Trend

The market value of NVIDIA shows a consistent upward trend over the entire period, increasing from approximately $191.7 billion in early 2020 to nearly $3.18 trillion by early 2025. Notably, there is a significant acceleration in market value growth between 2023 and 2025, where the value nearly quintuples from $576.2 billion to $3.18 trillion, indicating heightened investor confidence or substantial business development.

Invested Capital Development

Invested capital has steadily increased year over year, rising from $14.2 billion in 2020 to $47.4 billion in 2025. This signifies ongoing investments in operational assets and long-term projects. The rate of increase appears moderate compared to the surge in market value, with the invested capital roughly tripling over the period.

Market Value Added (MVA) Analysis

The Market Value Added, representing the difference between market value and invested capital, exhibits a strong positive progression. Starting at $177.5 billion in 2020, MVA reaches over $3.13 trillion by 2025. This indicates that the market perceives significant value creation beyond the invested capital, reflecting efficient capital deployment, growth prospects, or intangible assets recognized by the market.

Relationship Between Market Value, Invested Capital, and MVA

Throughout the period, the MVA remains very close to the market value minus invested capital, confirming internal consistency. The disproportionate growth of market value relative to invested capital highlights substantial value creation efficiency. This suggests that the company’s market valuation is driven largely by expected future earnings or other non-physical assets beyond the invested capital base.

The financial data reveals significant growth in market value added (MVA) over the period from January 2020 to January 2025. The MVA increased from US$177,484 million in January 2020 to US$3,130,216 million in January 2025, demonstrating a substantial appreciation in market value.

Invested capital also shows an upward trend, growing from US$14,224 million in January 2020 to US$47,433 million in January 2025. This indicates increased capital investment in the company over the five-year span, nearly tripling the invested capital.

The MVA spread ratio, which measures the value created relative to invested capital, exhibits a notable rise throughout the period. Starting at 1,247.78% in January 2020, it peaks at 6,599.24% in January 2025. This ratio climbed steadily, with a slight dip in January 2023, suggesting fluctuations in the return on invested capital but overall an increasing ability to generate market value above the invested amount.

The relationship between invested capital and MVA suggests strong value creation efficiency. Despite increases in invested capital, the market value added grew at a faster pace, contributing to the enhanced MVA spread ratio. The sharp escalation between January 2023 and January 2025 is particularly noteworthy, indicating accelerated market value gains relative to capital invested during that timeframe.

In summary, the data reflects robust expansion in both invested capital and market value, with MVA growth outpacing the capital deployed. The increasing MVA spread ratio highlights improving returns on investment and enhanced shareholder value generation over the observed periods.

Market Value Added (MVA)

The market value added shows a substantial upward trend over the observed periods. Starting at approximately 177 billion US dollars in early 2020, it nearly doubled by early 2021. This growth continued more than doubling again by early 2022. However, a slight decline is observed in early 2023, followed by a significant surge in early 2024 reaching over 1.6 trillion US dollars. The upward trend continues robustly into early 2025, with MVA surpassing 3.1 trillion US dollars, indicating strong long-term value creation.

Adjusted Revenue

Adjusted revenue has demonstrated consistent growth across the periods. Starting from approximately 11 billion US dollars in early 2020, it increased by more than 50% to about 17 billion US dollars by early 2021. Growth accelerated moving into early 2022 with revenues reaching nearly 27 billion US dollars, maintaining this level into early 2023. A substantial increase occurs in early 2024, with revenue more than doubling to nearly 62 billion US dollars, and this strong growth continues into early 2025, more than doubling again to approximately 131 billion US dollars. This trajectory indicates a significant expansion in operational scale or market reach.

MVA Margin (%)

The MVA margin exhibits fluctuations but generally trends upward. Beginning at about 1616% in early 2020, it increased to nearly 1920% by early 2021. The margin peaked significantly around early 2022 at approximately 2369%, before dipping to roughly 2052% in early 2023. A notable increase is observed in early 2024, reaching about 2670%, followed by a slight decrease to nearly 2390% in early 2025. The elevated levels of the MVA margin indicate strong returns relative to revenue, despite the modest fluctuations.