Nvidia Corp NVDA

The model, a log-log specification, finds revenue is negatively related to R&D and positively related to SG&A: a 1% increase in R&D is associated with about a 1.05% decrease in revenue, while a 1% increase in SG&A corresponds to roughly a 0.71% revenue rise. The model’s out-of-sample performance shows limited accuracy: MAPE 10.2% and a holdout error of about 3.7% (predicted $66B vs actual $68B). From an ROI perspective, R&D appears to have negative revenue impact in this framework, while SG&A provides a positive uplift, suggesting efficiency gains would hinge on rebalancing investment toward SG&A or improving R&D effectiveness. The FY forecast of $392B revenue, up 81.5% year over year, signals a strong growth trajectory but comes with notable model uncertainty and reliance on a cost structure that may not reflect longer-term dynamics.