MSFT vs NVDA: Which Is the Better Buy?
Side-by-side comparison of Microsoft Corporation and NVIDIA Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-26.
Microsoft Corporation · Technology
$497.12
+41.3% upside to fair value
High Conviction
Grade A
High Quality
VS
NVIDIA Corporation · Technology
$225.07
+45.0% upside to fair value
Med Conviction
Grade B
High Quality
QuantHub Verdict
NVDA has more upside to fair value
(+45.0%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
MSFT |
NVDA |
| Current Price |
$497.12 |
$225.07 |
| Fair Value Estimate |
$702.35 |
$326.35 |
| Upside to Fair Value |
+41.3%
|
+45.0%
|
| Market Cap |
$3,691.4B |
$5,451.4B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
18.3x
|
23.4x
|
| Price / Sales |
11.1x
|
18.0x
|
| Price / FCF |
55.1x
|
42.9x
|
| Revenue Growth YoY |
+17.7%
|
+105.9%
|
| Gross Margin |
67.9%
|
74.7%
|
| Operating Margin |
46.8%
|
65.2%
|
| Return on Equity |
33.2%
|
110.1%
|
| Dividend Yield |
0.73% |
0.23% |
| FCF Yield |
1.81%
|
2.33%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Microsoft is a global infrastructure-software platform spanning Azure, Microsoft 365, security, Dynamics, Windows, GitHub and AI copilots, with high business quality supported by enterprise distribution, explicitly cited switching costs, a $678 billion commercial RPO balance, 67.9% TTM gross margin, 46.8% TTM operating margin, 40.3% TTM net margin and 33.2% ROE. Revenue grew 17.7% and earnings gr…
NVIDIA designs the accelerated computing platforms at the center of the AI buildout, spanning data center GPUs, Mellanox networking, AI enterprise software, gaming GeForce GPUs, professional visualization, and automotive platforms, with 42,000 employees and a $5.45 trillion market capitalization. Business quality is exceptional on the fundamentals: TTM gross margin of 74.7%, TTM operating margin …
Accumulation Zones
| Metric |
MSFT |
NVDA |
| Zone Low |
$526.76 |
$244.76 |
| Zone High |
$597.00 |
$277.40 |
| In Buy Zone? |
Yes
|
Yes
|