| | | Analyzing NVIDIA In Comparison To Competitors In Semiconductors & Semiconductor Equipment Industry
BENZINGA 10:00 AM ET 2/6/2025
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| NVDA | 125.93 | +1.1 (+0.8812%) | | QUOTES AS OF 10:00:25 AM ET 02/06/2025 | Symbol Last Price Change
In today's rapidly changing and highly competitive business world, it is imperative for investors and industry observers to carefully assess companies before making investment choices. In this article, we will undertake a comprehensive industry comparison, evaluating NVIDIA(NVDA) vis-à-vis its key competitors in the Semiconductors & Semiconductor Equipment industry. Through a detailed analysis of important financial indicators, market standing, and growth potential, our goal is to provide valuable insights and highlight company's performance in the industry.
NVIDIA Background Nvidia (NVDA) is a leading developer of graphics processing units. Traditionally, GPUs were used to enhance the experience on computing platforms, most notably in gaming applications on PCs. GPU use cases have since emerged as important semiconductors used in artificial intelligence. Nvidia(NVDA) not only offers AI GPUs, but also a software platform, Cuda, used for AI model development and training. Nvidia(NVDA) is also expanding its data center networking solutions, helping to tie GPUs together to handle complex workloads.
Analyzing NVIDIA In Comparison To Competitors In Semiconductors & Semiconductor Equipment Industry
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Company P/E P/B P/S ROE EBITDA (in billions) Gross Profit (in billions) Revenue
| NVIDIA Corp (NVDA) | 49.28 | 46.39 | 27.40 | 31.13% | $22.86 | $26.16 | 93.61% | | Broadcom Inc | 179.84 | 16.07 | 21.49 | 6.49% | $7.29 | $9.0 | 51.2% | | Taiwan Semiconductor Manufacturing Co Ltd | 30.35 | 8.30 | 12.30 | 9.05% | $596.09 | $512.38 | 38.84% | | Qualcomm Inc | 18.97 | 7.24 | 4.88 | 11.46% | $3.21 | $5.78 | 18.69% | | ARM Holdings PLC | 227.97 | 28.45 | 49.76 | 1.83% | $0.11 | $0.81 | 4.71% | | Advanced Micro Devices Inc | 112.01 | 3.15 | 7.11 | 1.36% | $1.55 | $3.42 | 17.57% | | Texas Instruments Inc | 34.92 | 9.80 | 10.67 | 7.05% | $2.09 | $2.47 | -3.47% | | Micron Technology Inc | 26.82 | 2.23 | 3.61 | 4.07% | $4.3 | $3.35 | 84.28% | | Analog Devices Inc | 63.96 | 2.96 | 11.10 | 1.36% | $1.12 | $1.42 | -10.06% | | Monolithic Power Systems Inc | 73.72 | 13.56 | 15.69 | 6.35% | $0.17 | $0.34 | 30.59% | | Microchip Technology Inc | 37.15 | 4.58 | 5.30 | 1.24% | $0.34 | $0.67 | -48.37% | | ON Semiconductor Corp | 12.83 | 2.57 | 3.05 | 4.75% | $0.63 | $0.8 | -19.21% | | ASE Technology Holding Co Ltd | 20.35 | 2.33 | 1.22 | 3.16% | $28.59 | $26.43 | 3.85% | | STMicroelectronics NV | 13.43 | 1.15 | 1.58 | 1.95% | $0.74 | $1.23 | 2.15% | | First Solar Inc | 13.99 | 2.29 | 4.53 | 4.22% | $0.45 | $0.45 | 10.81% | | United Microelectronics Corp | 9.69 | 1.36 | 2.17 | 4.0% | $29.73 | $20.43 | 5.99% | | Skyworks Solutions Inc | 26.79 | 2.19 | 3.48 | 0.95% | $0.18 | $0.43 | -15.9% | | MACOM Technology Solutions Holdings Inc | 130.51 | 8.96 | 13.69 | 2.67% | $0.05 | $0.11 | 33.47% | | Qorvo Inc | 294.96 | 2.28 | 2.09 | 1.22% | $0.14 | $0.39 | -14.67% | | Lattice Semiconductor Corp | 54.33 | 10.87 | 13.65 | 1.03% | $0.03 | $0.09 | -33.87% | | Rambus Inc | 41.06 | 6.44 | 13.27 | 5.76% | $0.07 | $0.12 | 10.71% | | Average | 71.18 | 6.84 | 10.03 | 4.0% | $33.84 | $29.51 | 8.37% |
CompanyP/EP/BP/SROEEBITDA (in billions)Gross Profit (in billions)Revenue Growth
By closely studying NVIDIA(NVDA), we can observe the following trends:
- The stock's Price to Earnings ratio of 49.28 is lower than the industry average by 0.69x, suggesting potential value in the eyes of market participants.
- It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 46.39 which exceeds the industry average by 6.78x.
- With a relatively high Price to Sales ratio of 27.4, which is 2.73x the industry average, the stock might be considered overvalued based on sales performance.
- The Return on Equity (ROE) of 31.13% is 27.13% above the industry average, highlighting efficient use of equity to generate profits.
- Compared to its industry, the company has lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $22.86 Billion, which is 0.68x below the industry average, potentially indicating lower profitability or financial challenges.
- The company has lower gross profit of $26.16 Billion, which indicates 0.89x below the industry average. This potentially indicates lower revenue after accounting for production costs.
- The company's revenue growth of 93.61% is notably higher compared to the industry average of 8.37%, showcasing exceptional sales performance and strong demand for its products or services.
Debt To Equity Ratio 
The debt-to-equity (D/E) ratio is an important measure to assess the financial structure and risk profile of a company.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
When assessing NVIDIA(NVDA) against its top 4 peers using the Debt-to-Equity ratio, the following comparisons can be made:
- In terms of the debt-to-equity ratio, NVIDIA(NVDA) has a lower level of debt compared to its top 4 peers, indicating a stronger financial position.
- This implies that the company relies less on debt financing and has a more favorable balance between debt and equity with a lower debt-to-equity ratio of 0.16.
Key Takeaways For NVIDIA(NVDA) in the Semiconductors & Semiconductor Equipment industry, the PE ratio is low compared to peers, indicating potential undervaluation. The high PB and PS ratios suggest strong market sentiment and revenue multiples. A high ROE reflects efficient use of shareholder funds, while low EBITDA and gross profit may indicate operational challenges. The high revenue growth signifies strong top-line performance relative to industry peers.
This article was generated by Benzinga's automated content engine and reviewed by an editor. |
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