Microsoft (MSFT) vs NVIDIA (NVDA)
Head-to-head comparison of performance, valuation, growth, profitability and dividends. Prices delayed 15 minutes; data as of Oct 8, 2026.
Summary
NVIDIA (NVDA) has outperformed Microsoft (MSFT) over the past year, gaining 21.9% versus a gain of 1.1%. Over five years, NVDA leads with a +954.2% price change compared with +74.1% for MSFT. NVIDIA is the larger company by market cap ($5.57 trillion vs $3.88 trillion), about 1.4 times the size.
On valuation, NVIDIA trades at a lower forward P/E (14.5x vs 22.1x for Microsoft). Microsoft offers the higher dividend yield (0.70% vs 0.12%). NVIDIA converts more of its revenue into profit, with a net margin of 55.6% versus 40.3%.
Summary generated from market data by MetaCap's automated system. Methodology
Relative performance
Percent change in share price from the first common trading day shown; excludes dividends.
Head-to-head
| Metric | MSFT | NVDA |
|---|---|---|
| Share price | $522.61 | $230.48 |
| Market cap | $3.88T | $5.57T |
| 1-day change | -1.35% | -2.94% |
| YTD return | +9.54% | +23.58% |
| 1-year return | +1.10% | +21.88% |
| 5-year return | +74.14% | +954.25% |
| P/E ratio (TTM) | 29.11 | 29.14 |
| Forward P/E | 22.07 | 14.48 |
| EPS (TTM) | $17.95 | $7.91 |
| Dividend yield | 0.70% | 0.12% |
| Annual dividend | $3.64 | $0.28 |
| Revenue (latest FY) | $331.84B | $215.94B |
| Revenue growth (YoY) | +17.79% | +65.47% |
| Net income (latest FY) | $133.75B | $120.07B |
| Gross margin | 67.94% | 71.07% |
| Operating margin | 46.78% | 60.38% |
| Net margin | 40.31% | 55.60% |
| 52-week high | $553.72 | $243.37 |
| 52-week low | $349.20 | $164.27 |
| Distance from 52-week high | -5.62% | -5.30% |
| Analyst consensus | strong_buy | strong_buy |
| Avg. price target upside | +12.44% | +42.62% |
| Average volume | 27.86M | 121.53M |
| Shares outstanding | 7.43B | 24.15B |
| Employees | 223,000 | 42,000 |
| Sector | Technology | Technology |
| Industry | Computer Software: Prepackaged Software | Semiconductors |
Highlighted cells mark the higher value for growth, returns, margins and yield, and the lower value for P/E ratios. Highlighting is a mechanical comparison, not a recommendation.
Key differences
- NVDA has outperformed MSFT by 20.8 percentage points over the past year.
- NVIDIA is more profitable, keeping 55.6 cents of every revenue dollar as net income versus 40.3 cents for Microsoft.
- NVIDIA grew revenue faster in its latest fiscal year (+65.47% vs +17.79%).
About Microsoft
MSFT stock →Microsoft Corporation, a technology company, develops and supports a portfolio of technology solutions for individuals and businesses worldwide. Its products include operating systems, server applications, business solution applications, software development tools, desktop and server management tools, and video games; and devices, such as PCs, tablets, gaming and entertainment consoles, other intelligent devices, and related accessories.
Technology · Computer Software: Prepackaged Software · 223,000 employees
About NVIDIA
NVDA stock →NVIDIA Corporation operates as a data center scale AI infrastructure company in the United States, Taiwan, China, Hong Kong, Europe, and internationally. It operates through Compute & Networking, and Graphics segments.
Technology · Semiconductors · 42,000 employees
MSFT vs NVDA FAQ
Which is bigger, Microsoft or NVIDIA?
NVIDIA (NVDA) is larger, with a market capitalization of $5.57T compared with $3.88T for Microsoft (MSFT).
Which stock has performed better over the past year, MSFT or NVDA?
NVDA returned +21.88% over the past 12 months, compared with +1.10% for MSFT (price return, excluding dividends). Past performance does not predict future results.
Which has the lower P/E ratio, MSFT or NVDA?
MSFT has the lower trailing P/E at 29.1, versus 29.1 for NVDA. A lower P/E is not by itself a sign of a better investment; it can reflect slower expected growth or higher risk.
Which pays a higher dividend, Microsoft or NVIDIA?
Microsoft has the higher yield at 0.70%, compared with 0.12% for NVIDIA.
Are Microsoft and NVIDIA in the same industry?
Both are in the Technology sector, but in different industries: Computer Software: Prepackaged Software for Microsoft and Semiconductors for NVIDIA.