Comparing NVIDIA To Industry Competitors In Semiconductors &amp, Semiconductor Equipment Market

It is crucial for investors and industry enthusiasts to thoroughly assess companies in today’s fast changing and fiercely competitive business environment. In this article, we will conduct a thorough business analysis, comparing NVIDIA NVDA to its main rivals in the Semiconductors &amp, Semiconductor Equipment market. By analyzing significant economic indicators, market conditions, and potential growth, we hope to provide useful insights to investors and offer insight into the company’s performance within the sector.

NVIDIA Information

Nvidia Corp. is a full-stack technology network organization with data-center-scale offerings that are reshaping the business. It is also an honest programmer of graphics processing units. Nvidia now offers AI GPUs, as well as a technology platform, Cuda, that is used for the development and training of AI models. Traditionally, GPU were used to enhance experience. Additionally, the business is expanding its data centre networking options, which will enable the integration of GPUs with intricate workloads. such as AI, type instruction and assumption, data analytics, medical processing, and 3D graphics, with vertical-specific optimizations to address sectors ranging from automotive and manufacturing to healthcare and telecom.

Company P/E P/B P/S ROE EBITDA ( in billions ) Gross profit ( in billions ) Earnings growth
NVIDIA Corp 37.66 34.05 21.04 30.42% $25.82 $28.72 77.94%
Broadcom Inc. 82.57 12.02 15.77 8.01% $8.54 $10.14 24.71%
Taiwan Semiconductor Manufacturing Co., Ltd. 22.60 6.18 9.16 9.05% $596.09 $512.38 38.84%
Qualcomm Inc. 15.02 5.73 3.86 11.97% $4.23 $6.51 17.45%
Advanced Micro Devices Inc. 94.50 2.67 6 0.84% $1.69 $3.88 24.16%
Texas Instruments Inc. 29.03 8.13 8.87 7.02% $1.92 $2.31 -1.72%
ARM Holdings PLC 138.24 17.25 30.18 4.05% $0.22 $0.95 19.3%
Analog Devices Inc. 57.06 2.53 9.54 1.11% $1.03 $1.43 -3.56%
Micron Technology Inc. 16.99 1.63 2.56 3.32% $3.95 $2.96 38.27%
Monolithic Power Systems Inc. 14.73 8.20 11.92 52.73% $0.17 $0.34 36.93%
Microchip Technology Inc. 68.21 3.47 4.44 -0.87% $0.21 $0.56 -41.89%
STMicroelectronics NV 12.34 1.05 1.45 1.95% $0.89 $1.25 -22.42%
ASE Technology Holding Co Ltd 18.73 1.83 0.99 2.95% $30.11 $26.62 1.05%
United Microelectronics Corp 12.07 1.50 2.45 2.28% $29.73 $20.43 -0.16%
ON Semiconductor Corp 9.81 1.71 2.18 4.37% $0.62 $0.78 -14.65%
First Solar Inc. 10.92 1.76 3.36 5.05% $0.58 $0.57 30.68%
Skyworks Solutions Inc. 17.76 1.38 2.31 2.54% $0.31 $0.44 -11.07%
Credo Technology Group Holding Ltd. 1303.33 10.74 21.06 4.95% $0.03 $0.09 154.44%
Lattice Semiconductor Corp 99.32 8.46 11.87 2.33% $0.02 $0.07 -31.17%
Universal Display Corp 24.98 3.41 8.54 2.87% $0.06 $0.12 2.51%
Qorvo Inc. 210.46 1.63 1.49 1.22% $0.14 $0.39 -14.67%
Average 112.93 5.06 7.9 6.39% $34.03 $29.61 12.35%

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The following styles are apparent when reviewing NVIDIA:

  • The stock’s price to income ratio of 37.66 is 0.33x below the industry average, which suggests possible devaluation.
  • NVIDIA may be viewed as undervalued in terms of its book value because of its higher cost to book proportion of 34.05, which is 6.73 times the industry average, as a result of trading at a higher several than its peers in the same market.
  • The fund’s somewhat large Price to Sales percentage of 21.04, which is above the industry average by 2. 66x, may point to an overvaluation in terms of sales performance.
  • It appears that the business makes effective use of equity to generate profits with a Return on Equity ( ROE ) of 30.4 %, which is 24.03 % above the industry average.
  • The business’s earnings before interest, taxes, depreciation, and amortization ( EBITDA ) of$ 25.82 billion is 0.76x below the industry average. This might indicate lessening revenue or difficult economic circumstances.
  • The industry’s gross profit of$ 28.72 billion is 0. 97 times lower than its economy, which suggests a possible lower profits after production costs are taken into account.
  • The business is demonstrating robust sales growth and market share growth with a revenue growth rate of 77.94 %, which is higher than the industry average of 12.35 %.

Debt To Equity Ratio

debt to equity

The ratio of debt to equity ( D/E ) indicates how much a business depends on borrowed funds in relation to its equity.

In order to make informed decisions, a company’s financial health and risk profile can be accurately assessed by examining a company’s debt-to-equity amount in business comparisons.

The next comparisons can be made when NVIDIA and its bottom 4 rivals are based on the debt-to-equity ratio:

  • NVIDIA has a stronger economic status than its bottom 4 competitors, as demonstrated by its lower debt-to-equity proportion of 0.13.
  • This suggests that the company has a better balance between its debt and equity, which owners view as a good sign.

Important Findings

The PE ratio for NVIDIA is minimal compared to peers, which suggests possible undervaluation. Solid business attitude and income multiples are based on the high PB and PS ratios. Low EBITDA and net profit may show operating difficulties, while great Salmon reflects effective use of shareholder equity. The sector’s solid top-line performance in comparison to industry peers in the Semiconductors & Semiconductor Equipment field is demonstrated by the substantial revenue growth.

An editor read and wrote this article using Benzinga’s integrated content management system.

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