Is NVDA (NVIDIA Corporation) Halal or Haram?

Based on our AAOIFI-standard shariah screening, NVDA is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (0.22% vs ≤33% threshold), interest income ratio (1.37% vs ≤5% threshold), and cash & securities ratio (0.93% vs ≤33% threshold).

NVIDIA Corporation is the global leader in visual computing and artificial intelligence, best known for its GeForce GPUs that power high-end gaming and PC performance . Beyond gaming, the company has pivoted heavily into the Compute & Networking segment, providing essential hardware for data centers, cloud computing, and automotive infotainment systems. Its chips are currently the engine room for the global AI revolution, making it a critical player in the semiconductor industry. For Muslim investors, NVIDIA is considered Halal under AAOIFI standards, having passed all four mandatory financial screens. The company's business activities are fundamentally permissible, as manufacturing microchips and software involves no prohibited elements like alcohol, gambling, or usury. This 'Halal' status means you can confidently include NVDA in your portfolio without needing to purify large portions of dividends, though a small purification of the 1.37% interest income is recommended . Financially, NVIDIA is remarkably robust from an Islamic finance perspective, carrying almost negligible interest-bearing debt relative to its massive market capitalization (0.2%). This low leverage is a significant positive, as it keeps the company well clear of the 33% debt threshold that often disqualifies other tech giants. Additionally, its cash and interest- bearing securities sit at just 0.9% of market cap, indicating efficient capital deployment rather than hoarding cash in interest-yielding accounts. Going forward, investors should continue to monitor the company's revenue streams, particularly as it expands into software services and the 'Omniverse.' While currently compliant, rapid diversification can sometimes introduce new revenue lines that require scrutiny. However, at present, NVIDIA remains one of the cleanest large-cap technology stocks available for shariah-compliant portfolios. NVIDIA Corporation operates in the Technology sector under the Semiconductors industry and is headquartered in Santa Clara, CA, US. The company is led by CEO Jen-Hsun Huang and employs approximately 36,000 people.

NVDA was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. NVDA passed 4 of these 4 screens.

Although NVDA passes all shariah screens, it does earn $1.79B in interest income (1.37% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $1.37 to purify the income.

NVDA was last screened on 2026-02-24. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.