Based on the aggregated intelligence of 115,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, graphics-chip maker NVIDIA (NASDAQ:NVDA) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

With that in mind, let's take a closer look at NVIDIA's business and see what CAPS investors are saying about the stock right now.

NVIDIA facts

Headquarters (Founded)

Santa Clara, Calif. (1993)

Market Cap

$4.45 billion



Trailing-12-Month Revenue

$4.36 billion


Co-Founder/CEO Jen-Hsun Huang
Deborah Shoquist, Operations Senior VP

Return on Equity (Average, Past Three Years)



Advanced Micro Devices (NYSE:AMD)

CAPS Members Bullish on NVDA Also Bullish on:

Cisco Systems (NASDAQ:CSCO)

CAPS Members Bearish on NVDA Also Bearish on:

Citigroup (NYSE:C)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

Over on CAPS, 605 of the 637 All-Star members who have rated NVIDIA -- some 95% -- believe the stock will outperform the S&P 500 going forward. These All-Star bulls include dcstrade and papasilas, both of whom are ranked in the top 10% of our community.

Last week, dcstrade shared some of NVIDIA's bullish figures with our community:

Solid fundamental ratios -- [return on equity] and [return on assets]. I define "solid" as consistent over recent years, ROA > 10%, ROE > 18%. Recent plunge due to financial panic makes this more attractive. This is where my risk-taking side seems to be winning over my conservative side.

A pitch from papasilas in August shares that bullish attitude and cites the stock's attractive valuation -- which, even with yesterday's pop, is even cheaper today -- as the main reason to go long:

NVDA is the top dog in high-end [graphics processing units]. Its top competitor (AMD/ATI) is in a death spiral [because of] poor business decisions. It has a strong balance sheet -- $2.92 cash per share on hand -- and thus can weather the short term economic difficulties that hammered the stock to $10.60/share. [Price-to-earnings ratio] is < 9 and this is a potentially high growth stock. This is a good time to pick up a good company.

What do you think about NVIDIA, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 115,000 investors are waiting to hear what you have to say. CAPS is 100% free, so get started.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. NVIDIA and Apple are Motley Fool Stock Advisor recommendations, Intel is an Inside Value pick, and Google is a choice of Rule Breakers. The Fool's disclosure policy always gets a perfect score.