How much of NVIDIA’s revenue comes from haram?

NVIDIA earns its revenue from the following revenue sources:

  • Graphics:

Includes GeForce GPUs used for PC gaming and cryptocurrency mining, video game streaming services and related infrastructure, cloud-based gaming solutions, and gaming platform services.

NVIDIA’s GPUs also offer visual and virtual computing solutions trained to enhance productivity and introduce new capabilities in industries such as automotive, media and entertainment, architectural engineering, oil and gas, and medical imaging.

  • Compute & Networking:

Includes Data Center platforms and systems for High-Performance Computing, Cloud Computing, Computer Data Storage, and AI. 

NVIDIA also earns revenue from development agreements with automotive manufacturers for autonomous driving capabilities.

The contributions from each of NVIDIA’s revenue segments in their Q1 FY22 report were as follows:

Practical Islamic Finance concludes:

None of NVIDIA’s revenue comes from anything inherently haram.

Does NVIDIA rely on interest to operate?

For the Trailing Twelve Months as of May 2, 2021 (Numbers in thousands, U.S. Dollars):

Interest Income: $32,000

Total Revenue: $19,256,000

Interest Expense: $212,000

Total Expenses: $13,744,000

Interest Income / Revenue: 0.17%

Interest Expense / Total Expense: 1.10%

Practical Islamic Finance concludes:

Riba is used but not relied upon in NVIDIA’s operations.

What is NVIDIA’s Environmental, Social, and Governance (ESG) impact?

Environment

As of 2020, 34% of NVIDIA’s electricity use is sourced from renewable energy.

Social 

NVIDIA has an impressively high Glassdoor rating of 4.7 out of 5.0 from over 3,000 current and previous employees compared to a 3.3 average for all other Glassdoor rated companies.

Some compensation and benefits NVIDIA offers its employees according to its 2020 Corporate Social Responsibility Report are:

  • Paid parental leave for new mothers and fathers including weeks of paid time off for baby bonding.
  • 2:1 donation matching programs totaled to $7,694,419 in FY21. 
  • Tuition reimbursement
  • Employee stock purchase plan

Governance

No notable governance highlights.

Practical Islamic Finance concludes:

NVIDIA has a substantially positive ESG impact.

Comfort Rating

From NVIDIA’s business, financial, and ESG reviews, Practical Islamic Finance rates NVIDIA stock as:

Comfortable to invest in from a Halal perspective.

Sources

2020 NVIDIA Corporate Social Responsibility Report

FY21 Foundation Annual Report | NVIDIA

2020 NVIDIA Corporate Social Responsibility Snapshot

Form 10-Q