Is Nvidia Stock Halal? An analysis for Muslim Investors

Nvidia. The name sparks ideas of cutting-edge graphics, artificial intelligence and an impressive stock market performance over the past few years. For many investors, Nvidia feels like investing in the future.

But for Muslim investors, an important question will arise: Is Nvidia a Halal Investment?

In this deep dive, we'll see if Nvidia is Halal or not for Muslim investors to invest as a Shariah-compliant investment.

In order to answer this question, we will use AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) standard screening a company’s shares.

Why AAOIFI Shariah standards? Because they are among the most widely used and adopted standards in the Islamic finance industry. Whilst there are other methodologies AAOIFI’s standards offer a clear and recognisable methodology for screening stocks.

For a refresher on AAOIFI standards, see our blog. Also see our explainer on why a Halal Stock Screener is important when it comes to Halal Investing.

Under AAOIFI’s criteria, Halal Stock Screening involves a two step process.

1. Business Screening: The first step is to look at the company's core activities. 

A company is considered non-compliant if it is involved in impermissible (Haram) activities including

• Alcohol
• Gambling
• Pork-related products
• Conventional financial services (like interest-based lending)
• Entertainment (such as adult entertainment, inappropriate content etc.)

2. Financial Screening: If a company passes the business screening, the next step is looking at its financials. 

AAOIFI has established specific financial ratios to ensure a company is not heavily reliant on interest (or Riba), unsustainable debt level and Haram income. 

The key ratios are:

• Interest-Bearing Debt: The company's total interest-bearing debt should not exceed 30% of its market capitalisation.
• Interest-Bearing Deposits: The company's total interest-bearing deposits should not be more than 30% of its market capitalisation.
• Impermissible Income: Income from non-compliant activities (like interest income) should not exceed 5% of the company's total revenue.

Now, let's apply this framework to Nvidia.

Nvidia's Business Activities: A Halal Business?

Nvidia is a US-based technology company, known for designing and manufacturing graphics processing units (GPUs). Its business is centred around several key areas:

• Gaming: Nvidia's GeForce GPUs are a staple for gamers worldwide, providing the processing power for the latest video games.
• Data Centres & AI: Its powerful processors are the engine behind the current AI boom, used in machine learning, deep learning, and data analytics. Historically, this has become Nvidia's largest revenue driver. 
• Professional Visualisation: Nvidia's Quadro GPUs are used in professional design, architecture, and media production.
• Automotive: The company is also making inroads in the automotive industry, providing the technology for infotainment systems and autonomous driving.

For this analysis, we’re using the company’s latest financial report (three months ending 27 April 2025). 

To begin, Nvidia recorded a total revenue of $44bn for the first quarter of 2025, according to the company's latest financial report.

It recorded revenue in the following business lines:

• Data Center $39.1bn (Compute-$34.15bn; Networking-$4.96bn)
• Gaming $3.76bn
• Professional Visualisation $509m
• Automotive $567m
• Original Equipment Manufacturers (OEM) and Other $111m

From an activities perspective (based on the current quarterly financial report), Nvidia's core activities are considered Halal. It's a technology company that produces hardware and software with a wide range of applications, none of which fall into the explicitly prohibited categories. 

So, it passes the first stage of the AAOIFI screening process.

Nvidia's Financials: The Halal Test

Now, we need to look at the financials.

Interest-Bearing Debt

• The Rule: Total debt (whether long-term or short-term) does not exceed 30% of market capitalisation
• Calculation: ($8.46bn / $3.20 trillion)*100 = 0.26%
• Result: Extremely low and well within the limit. PASS

 Interest-Bearing Deposits Test

• The Rule: Interest-bearing deposits must be less than 30% of market capitalisation.
• Calculation: ($53.69bn / $3.20 trillion)*100 = 1.68%
• Result: Very healthy and well below the threshold. PASS

Haram Income

• The Rule: Impermissible income cannot exceed more than 5% of total revenue
• Calculation: ($515 million/ $44 billion)*100 = 1.17%
• Result: This is below the 5% threshold. PASS

The Verdict: Nvidia passes AAOIFI’s screening process and would be considered Halal to invest in, based on its current financial report.

It's important to remember however, that a company's financial situation can change. A new debt issuance or a change in investment strategy could alter these ratios. 

That's why it's important for  Muslim investors to monitor the company’s activities and financials.

How Tabadulat Makes Halal Investing Simple

At Tabadulat, we understand that not everyone has the time to sift through financial reports every quarter. 

Our platform is designed to do the heavy lifting for you. 

With our free Halal Stock Screener, we will screen 40,000 global stocks and ETFs daily. Using AAOIFI standards we will ensure that you will only be able to trade Halal stocks, ETF and Halal investments. remain Shariah-compliant .

By law, our methodology requires the approval of Islamic finance scholars. If at any point, if a stock in your portfolio becomes non-compliant, we'll notify you so you can take appropriate action.

We’re also creating a built-in Zakat calculator to purify your income in order to meet your Zakat obligations. This ensures that profits are not only halal but also purified.

Our mission is to bring transparency to the world of Halal investing, so you can build a portfolio that aligns with both your financial goals and your faith.

FAQs

Is Nvidia stock Halal? Yes. Based on the latest financial data, Nvidia passes the AAOIFI screening criteria. It is currently considered halal.

How to tell if a stock is Shariah-compliant? To check if a stock is Shariah-compliant, screen it using criteria from a recognised body like AAOIFI. This involves checking the company’ core business activities. Financial ratios related to debt, interest income, and cash holdings.

How to check if a stock is Halal or Haram? There are a few options. Review the company’s business model and earnings. Calculate AAOIFI’s three key ratios using the latest financials. Or use a Halal Stock Screener for instant results. With Tabadulat you will be able to screen over 40,000 stocks & ETFs.

Is it Halal to buy Nvidia stock? Yes, as of its latest financial disclosures, Nvidia qualifies as a halal stock under AAOIFI guidelines.

What does Nvidia do exactly? Nvidia designs and manufactures graphics processing units (GPUs), AI chips, and data centre infrastructure. Its products are used in gaming, AI, autonomous driving, and professional graphics.

Which country owns Nvidia? Nvidia is a publicly listed American company, headquartered in Santa Clara, California, USA.

Is Nvidia bigger than Apple? Nvidia is the larger company than Apple in terms of market capitalisation, as of 26 June 2025. Nvidia's market capitalisation stands at $3.8 trillion compared to Apple at $3trillion.

What does Nvidia stand for? Nvidia’s name originated from its co-founders using N and V to mean “next version” during early development. When incorporating the company, they searched for words containing N and V, eventually finding invidia, Latin for “envy.” Inspired by its meaning and fit, they chose Nvidia as the official name of the company.