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华尔街日报Comparative Study: NVIDIA And Industry Competitors In Semiconductors & Semiconductor Equipment Industry
In today's rapidly changing and fiercely competitive business landscape, it is essential for investors and industry enthusiasts to thoroughly analyze companies. In this article, we will conduct a comprehensive industry comparison, evaluating NVIDIA (NASDAQ:NVDA) against its key competitors in the Semiconductors & Semiconductor Equipment industry. By examining key financial metrics, market position, and growth prospects, we aim to provide valuable insights for 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 | 46.83 | 38.68 | 24.85 | 29.14% | $38.75 | $41.85 | 62.49% |
| Broadcom Inc | 73.23 | 20.37 | 26.54 | 11.02% | $9.86 | $12.25 | 28.18% |
| Taiwan Semiconductor Manufacturing Co Ltd | 30.92 | 9.73 | 13.38 | 9.44% | $691.11 | $588.54 | 30.31% |
| Advanced Micro Devices Inc | 112.51 | 5.76 | 10.95 | 2.06% | $2.11 | $4.78 | 35.59% |
| Micron Technology Inc | 26.26 | 5.29 | 7.37 | 9.28% | $8.35 | $7.65 | 56.65% |
| Qualcomm Inc | 34.88 | 8.83 | 4.36 | -12.88% | $3.51 | $6.24 | 10.03% |
| Intel Corp | 605.83 | 1.63 | 3 | 3.98% | $7.85 | $5.22 | 2.78% |
| Texas Instruments Inc | 32.26 | 9.68 | 9.39 | 8.21% | $2.24 | $2.72 | 14.24% |
| Analog Devices Inc | 60.69 | 4.01 | 12.47 | 2.32% | $1.47 | $1.94 | 25.91% |
| ARM Holdings PLC | 143.62 | 16.05 | 27.07 | 3.3% | $0.22 | $1.11 | 34.48% |
| Marvell Technology Inc | 30.87 | 5.29 | 9.77 | 13.84% | $2.58 | $1.07 | 36.83% |
| NXP Semiconductors NV | 27.93 | 5.66 | 4.78 | 6.43% | $1.11 | $1.79 | -2.37% |
| Monolithic Power Systems Inc | 24.21 | 12.67 | 17.07 | 5.12% | $0.21 | $0.41 | 18.88% |
| ASE Technology Holding Co Ltd | 31.62 | 3.37 | 1.72 | 3.56% | $32.4 | $28.88 | 5.29% |
| First Solar Inc | 20.67 | 3.21 | 5.73 | 5.19% | $0.61 | $0.61 | 79.67% |
| Credo Technology Group Holding Ltd | 127.42 | 20.76 | 35.46 | 7.99% | $0.09 | $0.18 | 272.08% |
| ON Semiconductor Corp | 76.29 | 2.83 | 3.76 | 3.22% | $0.44 | $0.59 | -11.98% |
| STMicroelectronics NV | 44.93 | 1.30 | 2.06 | 1.33% | $0.31 | $1.06 | -1.97% |
| United Microelectronics Corp | 14.88 | 1.75 | 2.63 | 4.29% | $30.07 | $17.62 | -2.25% |
| Tower Semiconductor Ltd | 69.99 | 4.77 | 9.07 | 1.9% | $0.13 | $0.09 | 6.79% |
| Lattice Semiconductor Corp | 382.65 | 14.82 | 21.37 | 0.4% | $0.01 | $0.09 | 4.92% |
| Rambus Inc | 44.85 | 7.87 | 15.10 | 3.84% | $0.08 | $0.14 | 22.68% |
| Average | 96.02 | 7.89 | 11.57 | 4.47% | $37.85 | $32.52 | 31.75% |
Upon closer analysis of NVIDIA, the following trends become apparent:
With a Price to Earnings ratio of 46.83, which is 0.49x less than the industry average, the stock shows potential for growth at a reasonable price, making it an interesting consideration for market participants.
With a Price to Book ratio of 38.68, which is 4.9x 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.
With a relatively high Price to Sales ratio of 24.85, which is 2.15x the industry average, the stock might be considered overvalued based on sales performance.
With a Return on Equity (ROE) of 29.14% that is 24.67% above the industry average, it appears that the company exhibits efficient use of equity to generate profits.
With higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $38.75 Billion, which is 1.02x above the industry average, the company demonstrates stronger profitability and robust cash flow generation.
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 31.75%.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio is a key indicator of a company's financial health and its reliance on debt financing.
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 terms of the Debt-to-Equity ratio, NVIDIA can be assessed by comparing it to its top 4 peers, resulting in the following observations:
NVIDIA demonstrates a stronger financial position compared to its top 4 peers in the sector.
With a lower debt-to-equity ratio of 0.09, the company relies less on debt financing and maintains a healthier balance between debt and equity, which can be viewed positively 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.