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華爾街日報Assessing NVIDIA's Performance Against Competitors In Semiconductors & Semiconductor Equipment Industry
In the fast-paced and cutthroat world of business, conducting thorough company analysis is essential for investors and industry experts. In this article, we will undertake a comprehensive industry comparison, evaluating NVIDIA (NASDAQ:NVDA) in comparison to its major competitors within the Semiconductors & Semiconductor Equipment industry. By analyzing crucial financial metrics, market position, and growth potential, our objective is to provide valuable insights for investors and offer a deeper understanding of company's performance in the industry.
NVIDIA Background
Nvidia 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 to run large language models. Nvidia not only offers AI GPUs, but also a software platform, Cuda, used for AI model development and training. Nvidia 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 | 46.59 | 38.48 | 24.72 | 29.14% | $38.75 | $41.85 | 62.49% |
| Broadcom Inc | 73.25 | 20.38 | 26.54 | 11.02% | $9.86 | $12.25 | 28.18% |
| Taiwan Semiconductor Manufacturing Co Ltd | 31.37 | 9.87 | 13.58 | 9.44% | $691.11 | $588.54 | 30.31% |
| Advanced Micro Devices Inc | 112.88 | 5.77 | 10.99 | 2.06% | $2.11 | $4.78 | 35.59% |
| Micron Technology Inc | 27.98 | 5.63 | 7.85 | 9.28% | $8.35 | $7.65 | 56.65% |
| Qualcomm Inc | 34.62 | 8.76 | 4.33 | -12.88% | $3.51 | $6.24 | 10.03% |
| Intel Corp | 611.33 | 1.64 | 3.02 | 3.98% | $7.85 | $5.22 | 2.78% |
| Texas Instruments Inc | 32 | 9.60 | 9.31 | 8.21% | $2.24 | $2.72 | 14.24% |
| Analog Devices Inc | 60.45 | 3.99 | 12.42 | 2.32% | $1.47 | $1.94 | 25.91% |
| ARM Holdings PLC | 141.68 | 15.83 | 26.70 | 3.3% | $0.22 | $1.11 | 34.48% |
| Marvell Technology Inc | 30.20 | 5.17 | 9.56 | 13.84% | $2.58 | $1.07 | 36.83% |
| NXP Semiconductors NV | 27.25 | 5.52 | 4.66 | 6.43% | $1.11 | $1.79 | -2.37% |
| Monolithic Power Systems Inc | 23.86 | 12.49 | 16.83 | 5.12% | $0.21 | $0.41 | 18.88% |
| ASE Technology Holding Co Ltd | 32.66 | 3.48 | 1.77 | 3.56% | $32.4 | $28.88 | 5.29% |
| First Solar Inc | 20.59 | 3.19 | 5.71 | 5.19% | $0.61 | $0.61 | 79.67% |
| Credo Technology Group Holding Ltd | 124.74 | 20.32 | 34.71 | 7.99% | $0.09 | $0.18 | 272.08% |
| STMicroelectronics NV | 44.86 | 1.29 | 2.05 | 1.33% | $0.31 | $1.06 | -1.97% |
| ON Semiconductor Corp | 74 | 2.75 | 3.65 | 3.22% | $0.44 | $0.59 | -11.98% |
| United Microelectronics Corp | 14.90 | 1.76 | 2.64 | 4.29% | $30.07 | $17.62 | -2.25% |
| Tower Semiconductor Ltd | 70.01 | 4.77 | 9.07 | 1.9% | $0.13 | $0.09 | 6.79% |
| Lattice Semiconductor Corp | 372.80 | 14.44 | 20.82 | 0.4% | $0.01 | $0.09 | 4.92% |
| Rambus Inc | 44.56 | 7.82 | 15 | 3.84% | $0.08 | $0.14 | 22.68% |
| Average | 95.52 | 7.83 | 11.49 | 4.47% | $37.85 | $32.52 | 31.75% |
Upon closer analysis of NVIDIA, the following trends become apparent:
The Price to Earnings ratio of 46.59 is 0.49x lower than the industry average, indicating potential undervaluation for the stock.
With a Price to Book ratio of 38.48, which is 4.91x the industry average, NVIDIA might be considered overvalued in terms of its book value, as it is trading at a higher multiple compared to its industry peers.
The Price to Sales ratio of 24.72, which is 2.15x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.
The company has a higher Return on Equity (ROE) of 29.14%, which is 24.67% above the industry average. This suggests efficient use of equity to generate profits and demonstrates profitability and growth potential.
The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $38.75 Billion is 1.02x above the industry average, highlighting stronger profitability and robust cash flow generation.
With higher gross profit of $41.85 Billion, which indicates 1.29x above the industry average, the company demonstrates stronger profitability and higher earnings from its core operations.
The company is experiencing remarkable revenue growth, with a rate of 62.49%, outperforming the industry average of 31.75%.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio measures the financial leverage of a company by evaluating its debt relative to its equity.
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 evaluating NVIDIA against its top 4 peers in terms of the Debt-to-Equity ratio, the following observations arise:
Compared to its top 4 peers, NVIDIA has a stronger financial position indicated by its lower debt-to-equity ratio of 0.09.
This suggests that the company relies less on debt financing and has a more favorable balance between debt and equity, which can be seen as a positive attribute by investors.
Key Takeaways
For NVIDIA in the Semiconductors & Semiconductor Equipment industry, the PE, PB, and PS ratios indicate that the stock is relatively undervalued compared to its peers. On the other hand, the high ROE, EBITDA, gross profit, and revenue growth suggest that NVIDIA is performing exceptionally well in terms of profitability and growth within the industry sector.
This article was generated by Benzinga's automated content engine and reviewed by an editor.