financetom
Technology
financetom
/
Technology
/
Comparing NVIDIA With Industry Competitors In Semiconductors & Semiconductor Equipment Industry
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Comparing NVIDIA With Industry Competitors In Semiconductors & Semiconductor Equipment Industry
Dec 13, 2024 7:30 AM

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.

Company P/E P/B P/S ROE EBITDA (in billions) Gross Profit (in billions) Revenue Growth
NVIDIA Corp ( NVDA ) 54.22 51.04 30.15 31.13% $22.86 $26.16 93.61%
Taiwan Semiconductor Manufacturing Co Ltd 30.73 8.09 12.18 8.36% $555.05 $439.35 38.95%
Broadcom Inc 140.05 12.47 16.74 -2.77% $6.39 $8.36 47.27%
Advanced Micro Devices Inc 115.58 3.72 8.79 1.36% $1.55 $3.42 17.57%
Qualcomm Inc 17.70 6.69 4.59 11.46% $3.21 $5.78 18.69%
Texas Instruments Inc 35.63 10.13 11.20 7.86% $2.09 $2.47 -8.41%
ARM Holdings PLC 244.68 25.87 44.48 1.83% $0.11 $0.81 4.71%
Micron Technology Inc 140.34 2.43 4.37 1.99% $3.63 $2.74 93.27%
Analog Devices Inc 66.38 3.07 11.52 1.36% $1.12 $1.42 -10.06%
Microchip Technology Inc 42.71 5.26 6.09 1.24% $0.34 $0.67 -48.37%
Monolithic Power Systems Inc 68.26 12.56 14.53 6.35% $0.17 $0.34 30.59%
ON Semiconductor Corp 16.65 3.33 3.96 4.75% $0.63 $0.8 -19.21%
STMicroelectronics NV 10.79 1.34 1.73 1.98% $0.74 $1.23 -26.63%
ASE Technology Holding Co Ltd 19.66 2.25 1.18 3.16% $28.59 $26.43 3.85%
First Solar Inc 16.91 2.77 5.48 4.22% $0.45 $0.45 10.81%
United Microelectronics Corp 10.13 1.42 2.27 4.0% $29.73 $20.43 5.99%
Skyworks Solutions Inc 24.29 2.26 3.47 0.95% $0.18 $0.43 -15.9%
MACOM Technology Solutions Holdings Inc 131.24 8.77 13.76 2.67% $0.05 $0.11 33.47%
Lattice Semiconductor Corp 61.24 12.25 15.38 1.03% $0.03 $0.09 -33.87%
Universal Display Corp 32.35 4.82 11.92 4.29% $0.08 $0.13 14.57%
Average 64.49 6.82 10.19 3.48% $33.38 $27.13 8.28%

table {

width: 100%;

border-collapse: collapse;

font-family: Arial, sans-serif;

font-size: 14px;

}

th, td {

padding: 8px;

text-align: left;

}

th {

background-color: #293a5a;

color: #fff;

text-align: left;

}

tr:nth-child(even) {

background-color: #f2f4f8;

}

tr:hover {

background-color: #e1e4ea;

}

td:nth-child(3), td:nth-child(5) {

text-align: left;

}

.dividend-amount {

font-weight: bold;

color: #0d6efd;

}

.dividend-frequency {

font-size: 12px;

color: #6c757d;

}

When conducting a detailed analysis of NVIDIA ( NVDA ), the following trends become clear:

At 54.22, the stock's Price to Earnings ratio is 0.84x less than the industry average, suggesting favorable growth potential.

The elevated Price to Book ratio of 51.04 relative to the industry average by 7.48x suggests company might be overvalued based on its book value.

The stock's relatively high Price to Sales ratio of 30.15, surpassing the industry average by 2.96x, may indicate an aspect of overvaluation in terms of sales performance.

With a Return on Equity (ROE) of 31.13% that is 27.65% above the industry average, it appears that the company exhibits efficient use of equity to generate profits.

With lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $22.86 Billion, which is 0.68x below the industry average, the company may face lower profitability or financial challenges.

With lower gross profit of $26.16 Billion, which indicates 0.96x below the industry average, the company may experience lower revenue after accounting for production costs.

The company's revenue growth of 93.61% exceeds the industry average of 8.28%, indicating strong sales performance and market outperformance.

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.

In light of the Debt-to-Equity ratio, a comparison between NVIDIA ( NVDA ) and its top 4 peers reveals the following information:

When comparing the debt-to-equity ratio, NVIDIA ( NVDA ) is in a stronger financial position compared to its top 4 peers.

The company has a lower level of debt relative to its equity, indicating a more favorable balance between the two with a lower debt-to-equity ratio of 0.16.

Key Takeaways

For NVIDIA ( NVDA ), the PE ratio is low compared to peers, indicating potential undervaluation. The high PB and PS ratios suggest strong market sentiment and revenue multiples. The high ROE reflects efficient use of shareholder equity, while low EBITDA and gross profit may indicate operational challenges. The high revenue growth rate signals strong sales performance relative to industry peers in the Semiconductors & Semiconductor Equipment sector.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Evening update for Bitcoin (BTCUSD) -22-08-2025
Evening update for Bitcoin (BTCUSD) -22-08-2025
Aug 22, 2025
The (BTCUSD) witnessed strong gains in its last intraday trading, supported by the emergence of the positive signals on the (RSI), to succeed in surpassing the negative pressure of the EMA50, to announce offloading the negative pressure, indicating a sudden strong rebound in the main bearish trend on the short-term basis. VIP Trading Signals Performance by BestTradingSignal.com (August 1115, 2025)...
Exclusive-Databricks to buy Sequoia-backed Tecton in AI agent push 
Exclusive-Databricks to buy Sequoia-backed Tecton in AI agent push 
Aug 22, 2025
(Reuters) -Databricks will acquire machine learning startup Tecton to expand its AI agent offerings, the latest in a string of deals aimed at offering full-scale AI building tools for enterprise customers, its chief executive told Reuters on Friday. Tecton, backed by Sequoia Capital and Kleiner Perkins, provides software that helps companies analyze and deploy data at scale with low latency....
Cybersecurity firm Netskope reveals 31% revenue surge in US IPO filing
Cybersecurity firm Netskope reveals 31% revenue surge in US IPO filing
Aug 22, 2025
By Arasu Kannagi Basil (Reuters) -Netskope recorded a 30.7% jump in revenue in the first half of fiscal 2026 while its net loss narrowed, the cybersecurity firm revealed on Friday in its U.S. initial public offering paperwork. The fall IPO window is poised to be a potentially busy one with a string of corporate issuers lining up to go public...
Analysis-Did Trump save Intel? Not really
Analysis-Did Trump save Intel? Not really
Aug 23, 2025
SAN FRANCISCO (Reuters) -U.S. President Donald Trump is injecting nearly $9 billion into Intel in exchange for a 9.9% equity stake. But the money - which the struggling chipmaker was slated to receive anyway under a federal funding act - will not be enough for its contract-chipmaking business to flourish, analysts said. What Intel needs is external customers for its so-called...
Copyright 2023-2026 - www.financetom.com All Rights Reserved