financetom
Technology
financetom
/
Technology
/
Performance Comparison: NVIDIA And Competitors In Semiconductors & Semiconductor Equipment Industry
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Performance Comparison: NVIDIA And Competitors In Semiconductors & Semiconductor Equipment Industry
Dec 2, 2024 7:19 AM

In the fast-paced and highly competitive business world of today, conducting thorough company analysis is essential for investors and industry observers. In this article, we will conduct an extensive industry comparison, evaluating NVIDIA ( NVDA ) in relation to its major competitors in the Semiconductors & Semiconductor Equipment industry. Through a detailed examination of key financial metrics, market standing, and growth prospects, our objective is to provide valuable insights and illuminate 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 ) 54.58 51.38 30.35 31.13% $22.86 $26.16 93.61%
Taiwan Semiconductor Manufacturing Co Ltd 29.57 7.79 11.72 8.36% $555.05 $439.35 38.95%
Broadcom Inc 130.92 11.53 16.05 -2.77% $6.39 $8.36 47.27%
Advanced Micro Devices Inc 121.39 3.91 9.23 1.36% $1.55 $3.42 17.57%
Texas Instruments Inc 37.37 10.62 11.75 7.86% $2.09 $2.47 -8.41%
Qualcomm Inc 17.73 6.70 4.60 11.46% $3.21 $5.78 18.69%
ARM Holdings PLC 222.01 23.48 40.36 1.83% $0.11 $0.81 4.71%
Micron Technology Inc 139.93 2.42 4.36 1.99% $3.63 $2.74 93.27%
Analog Devices Inc 66.48 3.08 11.53 1.36% $1.12 $1.42 -10.06%
Microchip Technology Inc 47.34 5.83 6.75 1.24% $0.34 $0.67 -48.37%
ON Semiconductor Corp 17.65 3.53 4.19 4.75% $0.63 $0.8 -19.21%
Monolithic Power Systems Inc 64 11.77 13.62 6.35% $0.17 $0.34 30.59%
STMicroelectronics NV 10.49 1.30 1.69 1.98% $0.74 $1.23 -26.63%
First Solar Inc 17.16 2.81 5.56 4.22% $0.45 $0.45 10.81%
ASE Technology Holding Co Ltd 19.32 2.21 1.16 3.16% $28.59 $26.43 3.85%
United Microelectronics Corp 10.66 1.49 2.39 4.0% $29.73 $20.43 5.99%
Skyworks Solutions Inc 23.74 2.21 3.39 0.95% $0.18 $0.43 -15.9%
MACOM Technology Solutions Holdings Inc 127.71 8.54 13.39 2.67% $0.05 $0.11 33.47%
Lattice Semiconductor Corp 55.64 11.13 13.98 1.03% $0.03 $0.09 -33.87%
Universal Display Corp 33.04 4.92 12.18 4.29% $0.08 $0.13 14.57%
Average 62.74 6.59 9.89 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;

}

By closely studying NVIDIA ( NVDA ), we can observe the following trends:

At 54.58, the stock's Price to Earnings ratio is 0.87x less than the industry average, suggesting favorable growth potential.

With a Price to Book ratio of 51.38, which is 7.8x the industry average, NVIDIA ( NVDA ) might be considered overvalued in terms of its book value, as it is trading at a higher multiple compared to its industry peers.

With a relatively high Price to Sales ratio of 30.35, which is 3.07x the industry average, the stock might be considered overvalued based on sales performance.

The company has a higher Return on Equity (ROE) of 31.13%, which is 27.65% above the industry average. This suggests efficient use of equity to generate profits and demonstrates profitability and growth potential.

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.

Compared to its industry, the company has lower gross profit of $26.16 Billion, which indicates 0.96x below the industry average, potentially indicating lower revenue after accounting for production costs.

The company's revenue growth of 93.61% is notably higher compared to the industry average of 8.28%, showcasing exceptional sales performance and strong demand for its products or services.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio helps evaluate the capital structure and financial leverage 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.

By considering the Debt-to-Equity ratio, NVIDIA ( NVDA ) can be compared to its top 4 peers, leading to the following observations:

NVIDIA ( NVDA ) has a stronger financial position compared to its top 4 peers, as evidenced by its lower debt-to-equity ratio of 0.16.

This suggests that the company has a more favorable balance between debt and equity, which can be perceived as a positive indicator by investors.

Key Takeaways

The low P/E ratio suggests that NVIDIA ( NVDA ) may be undervalued compared to its peers in the Semiconductors & Semiconductor Equipment industry. However, the high P/B and P/S ratios indicate that the market values the company's assets and sales at a premium. On the other hand, the high ROE, low EBITDA, low gross profit, and high revenue growth point towards strong profitability and growth potential for NVIDIA ( NVDA ) relative to its industry competitors.

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 >
Corn price hits the target – Forecast today - 17-05-2024
Corn price hits the target – Forecast today - 17-05-2024
May 16, 2024
Price Analysis for Corn Expected Scenario Corn price succeeded to achieve our waited target at 461.90$, noticing that the price broke this level and closed the daily candlestick below it, to confirm the continuation of the bearish trend domination and opens the way to head towards 449.20$ as a next main target. Therefore, the bearish bias will remain suggested in...
SoftBank Corp aims to help call centre workers by 'softening' angry customer calls with AI
SoftBank Corp aims to help call centre workers by 'softening' angry customer calls with AI
May 16, 2024
(This May 16 story has been refiled to amend quotes to clarify that SoftBank was referring to workers and customers in general, not necessarily its own, in paragraphs 3 and 4) TOKYO (Reuters) - Dealing with irate customers can be extremely stressful for call centre workers but Japan's SoftBank Corp ( SFBQF ) thinks it has a solution: artificial intelligence-enabled...
Brent oil price crawls upwards – Forecast today - 17-05-2024
Brent oil price crawls upwards – Forecast today - 17-05-2024
May 16, 2024
Price Analysis for Brent Oil Expected Scenario The Brent oil price has resumed positive trading and is currently testing the EMA50. Further upward movement is expected to target 84.77$, representing the main objective of the current bullish wave, thereby maintaining a positive scenario on the intraday basis. It's important to note that the current uptrend is considered temporary unless there...
Sugar price hits the second target – Forecast today - 17-05-2024
Sugar price hits the second target – Forecast today - 17-05-2024
May 16, 2024
Price Analysis for Sugar Expected Scenario Sugar price resumed its negative trading to succeed touching our second target at 18.00$, and we expect the continuation of the bearish bias to visit the previously recorded low at 17.35$ as a next negative station. The EMA50 keeps supporting the suggested bearish wave, noting that breaching 18.90$ might push the price to attempt...
Copyright 2023-2026 - www.financetom.com All Rights Reserved