The Nvidia balance sheet, which the markets have been waiting for with great curiosity, has arrived. The numbers are truly mind-boggling. Now we will dive into the depths of the balance sheet, look at what the CEO said, and try to examine the comments of the markets a little. We will decide whether Nvidia stock is expensive or cheap. If you want to invest in this stock or short sell this stock, in other words, if you think this will go bad and say I should sell it, I will talk about some interesting ETFs that you can use. Thus, you will have a very holistic view of Nvidia. This second most valuable company in the world has a valuation of over 3 trillion dollars. Its valuation alone is more than the total valuations of countries, as you know, they are competing with Apple in terms of being the most valuable company. You will have learned everything and then you will draw your own investment strategy. Nvidia's balance sheet also has effects on the entire technology sector. It also gives us some clues about where the artificial intelligence game is heading, I will touch on them a little.

First, let's take a look at the financial statements from above. The turnover is 39.331 billion dollars, in the last quarter this was 35.082 billion dollars, in other words, the company added around 4 billion dollars to its turnover in 3 months. In the same quarter of 2024, the turnover is 22.103 billion, when we look at it like this, the company has grown by 12% compared to the previous quarter and 78% year-on-year in turnover. Gross profit came to 73%. The previous quarter was 74%, the same quarter last year was 76%. There is a slight decline here. 1.6 basis points compared to the previous quarter, and 3 basis points compared to the same quarter last year. The main reason for this is the Blackwell ramp up. As you know, they are launching their new series chips called Blackwell after the Hopper chips, these are more complex chips. There are quite a few difficulties during the ramp up of its production, that is, during the production to reach efficiency. They are doing this production together with TSMC.

So what does ramp up mean and why are the costs increasing? When a company starts producing a brand new product, it deals with many issues such as production line optimization, supply chain optimization, optimization of production robots, and increasing the sensitivity of workers there. Therefore, inefficiency is experienced during the period when new products are started to be produced. This is the case in all sectors. Ramp up means solving this step by step and moving it upwards, and thus both producing more microchips on the production line and reducing the error rate in them, ramp up is such a process. In such periods, companies always go down a little. I experience this in automobiles from time to time at Tesla. In every ramp up period, the numbers go down. This is one of the reasons for the decline in profit here.

The company says that our gross profit will go down to 71% for the next quarter. Because the ramp up is still ongoing. It says that we will return to 75% averages as of the next quarter. This is one of the issues that Wall Streeters debate a little. Is this a temporary thing? Is this company lying to us? Is the profit margin really decreasing, etc. By the way, of course, the 73% profit margin is huge. I personally always give great importance to gross profit. Because gross profits tell us many things such as what is the situation against competition, how much the company's new products are liked by customers. But such problems occur during these ramp-up periods. Come and tell those who have never done production on Wall Street.

Operating expenses were 4,689, the previous quarter was 4,287, last year was 3,176. There was a 9% growth compared to the previous quarter. There was a 48% growth compared to the previous year. Now there is growth here, but this growth is below the turnover growth. What does this mean? In fact, the company is becoming more and more efficient. We can call this operating leverage. Yes, it increases expenses a little, but since it increases turnover much more than that, productivity actually increases, and the company states in its statement that one of the main reasons for the rapid growth in this period is again related to this ramp-up. They employ more workers, more money is spent on research and development, etc. These are always reflected in the operating expenses.

Operating profit is 24,034, previous quarter is 21,869, same quarter last year is 13,615. There is a 10% quarter-on-quarter and 77% year-on-year growth. Net profit is 22,091, previous quarter is 19,309, same quarter last year is 12,285. There is a 14% quarter-on-quarter and 80% year-on-year growth. Earnings per share are 89 cents. The previous quarter was 78, meaning 14% quarter-on-quarter earnings per share increased. You need to understand this like this. The price of the stock didn't move at all yesterday. In fact, it hasn't moved much for 3 months, it goes and comes. It always seems to stay in the same places. In this case, the price-earnings ratio has actually decreased by 10%. Because it is actually 10% more profitable. There is also an 82% year-on-year increase. These are according to GAAP standards. There is also a non-GAAP standard. There are numbers for that too. Let's not get into that.

When we look at the annual total, Nvidia is now a company with a turnover of 130 billion dollars. The previous year's turnover was 60 billion dollars, and they have grown by 114%. Gross profit is 75% When we look at the total for 2025, it was 72.7 in 2024, and they have increased from there. The growth in operating expenses, on the other hand, is only 45%, operating income has increased by 147% year-on-year, net profit has increased by 145% year-on-year, and earnings per share has increased by 147% year-on-year. So if you ask how things are going in different segments of the company, there is a turnover of 35.6 dollars from the data center. This means a growth of 16% compared to the previous quarter. It means a growth of 93% year-on-year. When we look at it year-on-year, there is a 142% increase compared to the previous year, 115.2 billion dollars in turnover from data centers this year, this is truly an incredible number.

There is a slight decline in the gaming side. There is a 2.5 billion dollar turnover here. There is a 22% decline compared to the previous quarter. There is an 11% decline compared to the previous year. They made a statement like we launched some new products and their sales have not been fully realized yet. Remember, the gaming side is also having a bit of a hard time at AMD. The reason for the trouble on the gaming side is that the consumer has lost some of their power to buy these types of games. The devices are quite expensive as you know, but they say we will compensate for these deficits with our new products like the GeForce RTX 50.

Professional imaging turnover is 511 million dollars, there is a 5% growth here compared to the previous quarter. 10% year-on-year growth is a bit mediocre. One of the things that excites me is the growth on the automotive side. Here they say automotive and robots. In other words, artificial intelligence for devices, let me put it like that. There is a turnover of 570 million dollars. There is a growth of 27% compared to the previous quarter and 103% compared to the previous year. Here they talk about their collaboration with Toyota. They say that Nvidia sold its Drive chips to them. Again, they talk about their collaboration with Hyundai. This is a bit disturbing for Tesla, many companies are now starting to take their own paths with Nvidia chips. Tesla needs to realize this fully autonomous driving as soon as possible.

Of course, we also need to look at the balance sheet. They have 80 billion 126 million current assets. Last year, this was 44 billion, while their current debt is only 18 billion dollars. Their total assets are 111 billion dollars. In contrast, their total debt is around 32 billion dollars, they really have a balance sheet of 10. The company's free cash flow has decreased a bit, it came in slightly below Wall Street expectations. They said that they had to bear new investment costs because of these Blackwell chips. They said that this will recover again in the coming quarters, the balance sheet is like this, the numbers are like this. The numbers don't lie, we really have a tremendous company in front of us.

So after these numbers, let's take a look at whether the company is expensive or cheap. Of course, whether a company's stock is expensive or cheap is always a subject that can be debated. When we look at the period before the balance sheet, the company's forward price-earnings ratio was 29.61. This also seems expensive to people. But when we look at Nvidia itself, things change a little. Price-earnings retrospectively, they made such a peak in 2023, it recovered from there, it is still going to the figures in 2022, price-earnings ratios and price-earnings forward ratios. Also, don't forget that there is a 14% increase in earnings per share compared to the previous quarter in the latest balance sheet and the stock did not react here, the price is the same right now. What does this mean? The stock price has decreased by around 14% relatively within itself.

Despite the company strengthening its balance sheet, why hasn't it been reflected in the value? This is something related to the general market climate, Trump's tariffs, etc. For example, the market was doing very well yesterday. Trump said he would impose a 25% tariff on Europe, and the market went down again. Of course, that affects Nvidia. Also, will Nvidia be able to continue this growth? Will there be demand problems in the AI ​​side? OK, it was very good this quarter, but what will happen next quarter? There is a decrease in profits, will this alarm? All these are scaring people.

If you wanted to invest in Nvidia stock, how and where would you do it? It might be useful to look at this as well. Actually, let's say you are very motivated about Nvidia stock, you think the stock will go up a lot, or on the contrary, you look at the balance sheets and say, oh Nvidia's business is finished, it will go down from here. There are simpler things that can be done on this subject, without going to the options market and so on. You can use leveraged etfs, which are etp. These are actually funds that are bought and sold just like stocks in the United States, and there can be etfs based on companies. For example, NVDL says that if Nvidia stock goes up by one, we will go up by two. There are two leveraged Nvidia etfs, NVDL, NVDU, NVDA, NVDG, NVDX, and many more, you can buy and sell them.

Or you think the stock will go down, this could happen too. You say, this stock will go down, I want to short sell it. It is a bit more complicated to do such transactions. In this case, you can buy ETFs that price the decline. For example, there are two ETFs called NVD and NVDS. They have a situation like if the stock goes down by 1%, their value increases by 2%, but of course, the opposite can also happen. If your idea turns out to be wrong, you will lose twice as much money in these. That's why I normally do not recommend leveraged ETFs at all. But some people sometimes like to take such risks. If you are going to do it, you should think about them in the very short term. I never recommend long-term ETFs, in the short term, if you really believe in it, something can be tried.

There are also ETFs that give 3 times, both upwards and downwards. For example, if the stock goes up, the NV3L ETF goes up 3 times. There is another one, ISIN. This one goes up 3 times again. There are also those that go up if the stock goes down. SNVD is another example of these, but if you stay in the opposite direction, you lose three times as much money, don't forget that.

Let's also look at the price movement of Nvidia stock and what happens. The stock price was around $79-80 a year ago. The stock price is around $120 right now. On the other hand, the company's turnover is profitable, there are always close to 100% growth. Doesn't this make Nvidia very cheap, but I can say that Nvidia has become relatively cheap within itself. Of course, Nvidia moves somewhat in proportion to the general course of the American stock markets. But I wouldn't say that Nvidia stock is very expensive from here when I look at it relatively.

Within this framework, I will continue to hold my Nvidia position. Of course, this is not investment advice, of course I could be wrong, but I have been an investor in Nvidia for a long time and I came here by taking some profit during those rapid increases. Now the Nvidia stocks I have are my core. Apart from Nvidia, I am also in AMD and Qualcomm. I also have other investments in artificial intelligence infrastructure as other microchip manufacturers. This balance sheet also made me happy. I want to continue to be a partner in a very strong company.

I believe that the game in artificial intelligence will progress, we are still at the beginning. For example, large institutions are almost never using artificial intelligence. Because there are still hallucination problems in artificial intelligence. In other words, artificial intelligence can dream, it can still provide fake information, even the most advanced ones can make mistakes, there are security problems, etc. Larger institutions have not even started spending money on this business. We are still at the very beginning of this business, the number of problems solved by artificial intelligence in the world is still very few.

For example, we still do not have drugs developed by artificial intelligence. These will be developed. There is still no fully autonomous driving, there are still no fully autonomous military drones. All these will happen. In this context, I think there will be a need for Nvidia and many other microchip manufacturers. I continue to hold the stock, but I do not plan to make any aggressive new purchases from here.

I hope this is a satisfactory article for you. We have looked at Nvidia in such detail. I wish everyone good luck, you will make your own decisions. Do not be interested in anyone's opinion, including mine. Use your own brain instead. Read and listen to the opinions and thoughts of others, of course. This is what will enrich your brain. But the final decision will be yours, and the simple question is, will this company grow or shrink? Will America's debts get worse or better? What are the risks, what are the returns? How should I give this a place in my portfolio, long or short? Should I buy an ETF, should I buy the stock itself, or should I not get involved at all? These decisions are now completely up to you. I have made my own decision.

The information, comments and recommendations contained herein are not within the scope of investment consultancy. Investment consultancy services are provided within the framework of the investment consultancy agreement to be signed between brokerage firms, portfolio management companies, banks that do not accept deposits and customers. The comments in this article are only my personal comments and these comments may not be appropriate for your financial situation and risk return. For this reason, investments should not be made based on the information and comments in my articles.