Nvidia

Financially, Nvidia is very strong. Its balance sheet is laden with cash and equivalently liquid assets (current assets of $44B vs liabilities of ~$15B as of Q1 FY2025)). This yields net cash on the order of $20B+. Debt is quite low: short-term debt $1.25B and long-term debt ~$8.5B (total ~$9.8B)), trivial relative to cash and free cash flow.

The company’s leverage ratios are conservative and would remain manageable even in a downturn. Importantly, Nvidia generated enormous free cash flow: in FY2024 FCF was $27B, and first half FY2025 another ~$28B (run-rate implying >$50B annually)). These cash flows easily cover capex and dividends, and enable large buybacks.

This fortress balance sheet means Nvidia could weather a challenging semiconductor cycle or broader slowdown with ease.