AAOIFI Shari'a screening Β· Reviewed May 17, 2026
Is NVDA halal in 2026?
NVIDIA (NVDA) passes AAOIFI Shari'a screening as of 2026. Direct verdict, ratios vs thresholds, purification estimate, and the scholars who back it.
Yes. NVIDIA (NVDA) is currently halal under AAOIFI Shari'a Standard No. 21 as of May 2026. Its core business is permissible (GPU design and AI compute), its debt-to-market-cap ratio is well below 30%, and interest-bearing income is under 5% of revenue. A small purification (~1%) of dividends and gains is recommended.
AAOIFI ratio breakdown
| Ratio | Value | Threshold | Verdict |
|---|---|---|---|
| Interest-bearing debt / Market cap | <5% | <30% | Pass |
| Interest-bearing securities / Market cap | <5% | <30% | Pass |
| Non-permissible income / Revenue | <2% | <5% | Pass |
Recommended purification: approximately 1% of dividends received and realized capital gains.
NVIDIA designs graphics processors and AI accelerators. The underlying business β chips, software, and data-center compute β is permissible under AAOIFI Shari'a Standard No. 21. There are no prohibited revenue streams (no alcohol, no conventional finance, no gambling).
On the quantitative side, NVDA's interest-bearing debt is a fraction of its market capitalization (well under the 30% threshold), and interest-bearing securities held are similarly minor relative to market cap. Non-permissible income β primarily interest on cash reserves β is comfortably below the 5% of revenue threshold.
Like most large U.S. corporations, NVDA holds material cash reserves that earn interest, so the conservative practice is to purify approximately 1% of dividends received and capital gains realized. This is consistent with the Wahed / FCNA / Amana methodology.
Methodology
Verdict applies the methodology of AAOIFI Shari'a Standard No. 21 β Financial Papers (Shares and Bonds): qualitative screening for prohibited business activities, plus three quantitative caps β interest-bearing debt < 30% of market cap, interest-bearing securities < 30%, and non-permissible income < 5% of revenue.
Sources and scholars
- Wahed Invest Shari'a Board
- Amana Mutual Funds (Saturna) Shari'a Supervisory Board
- Fiqh Council of North America (FCNA) on quantitative screening
Frequently asked
Is NVDA halal in 2026?
Yes β NVDA passes AAOIFI quantitative thresholds (debt, interest-bearing securities, and non-permissible income are all comfortably below the 30%/30%/5% caps) and has no prohibited business lines. Approximately 1% purification is recommended.
How much should I purify from NVDA dividends?
Roughly 1% of dividends and realized capital gains, matching NVDA's non-permissible income ratio. Use HalalScreener's purification calculator for an exact figure based on your position size.
Does AAOIFI consider NVIDIA's AI products to be permissible?
Yes. GPU design and AI compute are permissible activities under AAOIFI Shari'a Standard No. 21. The ethical concerns sometimes raised about specific applications of AI fall outside the scope of corporate-level Shari'a screening.