TYC FINANCE ALI 

In the context of a globalized economy, Shariah compliance has become a critical issue for many Muslim investment institutions and companies aiming to attract investors from the Islamic world. NVIDIA, a global leader in the manufacture of graphics processing units (GPUs), has not only made significant achievements in technological innovation but has also demonstrated remarkable stock performance in recent years. On August 21, 2024, the market witnessed a dramatic rebound in NVIDIA's stock price. Starting from August 7, when the stock price briefly fell below the psychological threshold of $100, NVIDIA's stock surged by over 30% in just eight trading days, increasing its market value by a staggering $765 billion, surpassing even the total market value of the electric vehicle giant, Tesla. This significant increase in market value not only reflects investors' strong confidence in NVIDIA's future prospects but also highlights the company's outstanding performance in the capital market.As of the close of trading on Tuesday this week, Tesla's market value stood at $706.3 billion, while NVIDIA's market value has reached a scale of $3.15 trillion, underscoring its leading position in the global tech sector.

Further analysis from a Shariah finance perspective reveals that NVIDIA's financial report for the first quarter of 2025 shows that the company's main sources of income are concentrated in the Compute and Networking sectors. The Compute business, with a 73.2% share, dominates the company's revenue, while the Networking business accounts for 12%. Within the Compute business, GPU revenue for computers leads with a high proportion of 85.2%, followed by professional visualization GPUs at 11.4%. The revenue from GPUs in the automotive sector accounts for 1.2%, while the revenue from original equipment manufacturers (OEMs) and other businesses is relatively small, at 0.3% each. A significant 96.9% of this revenue is deemed to meet the "Halal" standards of Shariah law, indicating that most of NVIDIA's business activities and products largely adhere to the principles and concepts of Islamic finance, avoiding involvement in interest (riba) and unethical business practices.

However, the report also points out that 1.4% of the revenue sources are considered "Doubtful" from the perspective of Islamic finance, such as cloud gaming and other businesses, which may include gaming and entertainment content and thus require further review to ensure full compliance. Additionally, 1.4% of the revenue comes from interest income that does not conform to Shariah law, an area that NVIDIA needs to improve and "purify."

In summary, while NVIDIA pursues technological innovation and market expansion, its business development and revenue composition also comply with the scope of Islamic finance. This respect and adherence to the principles of Islamic finance will undoubtedly further enhance its attractiveness and trust among the global Muslim investment community, laying a solid foundation for the company's long-term development. Also as NVIDIA continues to push the boundaries of technology and finance, it must navigate the complexities of the global market with prudence, ensuring that its growth is sustainable and its practices are beyond reproach. The company's journey serves as an inspiration for others in the industry, highlighting the potential for harmonizing cutting-edge innovation with time-honored financial ethics.