Nasdaq
华尔街日报Competitor Analysis: Evaluating NVIDIA And Competitors In Semiconductors & Semiconductor Equipment Industry
In the ever-evolving and intensely competitive business landscape, conducting a thorough company analysis is of utmost importance for investors and industry followers. In this article, we will carry out an in-depth industry comparison, assessing NVIDIA (NASDAQ:NVDA) alongside its primary competitors in the Semiconductors & Semiconductor Equipment industry. By meticulously examining key financial metrics, market positioning, and growth prospects, we aim to offer valuable insights to investors and shed light on company's performance within 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 | 44.92 | 37.09 | 23.84 | 29.14% | $38.75 | $41.85 | 62.49% |
| Broadcom Inc | 97.84 | 24.59 | 30.80 | 5.8% | $8.29 | $10.7 | 22.03% |
| Taiwan Semiconductor Manufacturing Co Ltd | 30.28 | 9.52 | 13.11 | 9.44% | $691.11 | $588.54 | 30.31% |
| Advanced Micro Devices Inc | 112.69 | 5.76 | 10.97 | 2.06% | $2.11 | $4.78 | 35.59% |
| Micron Technology Inc | 31.55 | 4.98 | 7.21 | 6.1% | $5.9 | $5.05 | 46.0% |
| Intel Corp | 724.50 | 1.95 | 3.58 | 3.98% | $7.85 | $5.22 | 2.78% |
| Qualcomm Inc | 34.07 | 8.62 | 4.26 | -12.88% | $3.51 | $6.24 | 10.03% |
| Texas Instruments Inc | 31.92 | 9.58 | 9.29 | 8.21% | $2.24 | $2.72 | 14.24% |
| ARM Holdings PLC | 174.97 | 19.55 | 32.98 | 3.3% | $0.22 | $1.11 | 34.48% |
| Analog Devices Inc | 59.86 | 3.95 | 12.30 | 2.32% | $1.47 | $1.94 | 25.91% |
| Marvell Technology Inc | 32.71 | 5.70 | 10.36 | 1.46% | $0.62 | $1.01 | 57.6% |
| NXP Semiconductors NV | 26.62 | 5.40 | 4.56 | 6.43% | $1.11 | $1.79 | -2.37% |
| Monolithic Power Systems Inc | 24.43 | 12.78 | 17.23 | 5.12% | $0.21 | $0.41 | 18.88% |
| ASE Technology Holding Co Ltd | 30.96 | 3.30 | 1.68 | 3.56% | $32.4 | $28.88 | 5.29% |
| Credo Technology Group Holding Ltd | 162.45 | 26.47 | 45.21 | 7.99% | $0.07 | $0.15 | 20.15% |
| First Solar Inc | 20.15 | 3.13 | 5.59 | 5.19% | $0.61 | $0.61 | 79.67% |
| ON Semiconductor Corp | 70.52 | 2.62 | 3.48 | 3.22% | $0.44 | $0.59 | -11.98% |
| STMicroelectronics NV | 41.53 | 1.20 | 1.90 | 1.33% | $0.31 | $1.06 | -1.97% |
| United Microelectronics Corp | 14.47 | 1.70 | 2.56 | 4.29% | $30.07 | $17.62 | -2.25% |
| Tower Semiconductor Ltd | 67.32 | 4.59 | 8.72 | 1.9% | $0.13 | $0.09 | 6.79% |
| Rambus Inc | 45.81 | 8.04 | 15.42 | 3.84% | $0.08 | $0.14 | 22.68% |
| Skyworks Solutions Inc | 22.16 | 1.76 | 2.59 | 2.48% | $0.25 | $0.45 | 7.34% |
| Average | 88.42 | 7.87 | 11.61 | 3.58% | $37.57 | $32.34 | 20.06% |
After thoroughly examining NVIDIA, the following trends can be inferred:
At 44.92, the stock's Price to Earnings ratio is 0.51x less than the industry average, suggesting favorable growth potential.
With a Price to Book ratio of 37.09, which is 4.71x 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 stock's relatively high Price to Sales ratio of 23.84, surpassing the industry average by 2.05x, may indicate an aspect of overvaluation in terms of sales performance.
The Return on Equity (ROE) of 29.14% is 25.56% above the industry average, highlighting efficient use of equity to generate profits.
The company exhibits higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $38.75 Billion, which is 1.03x above the industry average, implying stronger profitability and robust cash flow generation.
Compared to its industry, the company has higher gross profit of $41.85 Billion, which indicates 1.29x above the industry average, indicating 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 20.06%.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio is a measure that indicates the level of debt a company has taken on relative to the value of its assets net of liabilities.
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 comparing NVIDIA with its top 4 peers based on the Debt-to-Equity ratio, the following insights can be observed:
When comparing the debt-to-equity ratio, NVIDIA 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 0.09.
Key Takeaways
For NVIDIA in the Semiconductors & Semiconductor Equipment industry, the PE ratio is low compared to peers, indicating potential undervaluation. The PB and PS ratios are high, suggesting overvaluation relative to industry standards. In terms of ROE, EBITDA, gross profit, and revenue growth, NVIDIA outperforms its competitors, reflecting strong financial performance and growth prospects.
This article was generated by Benzinga's automated content engine and reviewed by an editor.