Competitor Analysis: Evaluating NVIDIA and competitors in the semiconductor and semiconductor equipment industry – NVIDIA (NASDAQ: NVDA)
In today’s rapidly changing and competitive business world, investors and industry observers must carefully evaluate the company before making investment choices. In this article, we will conduct a comprehensive industry comparison and evaluation Nvidia NVDA Compared with the semiconductor and semiconductor equipment industry, it is a major competitor. Through detailed analysis of important financial metrics, market position and growth potential, our goal is to provide valuable insights and highlight the company’s performance in the industry.
NVIDIA Background
NVIDIA is a leading developer in the graphics processing unit. Traditionally, GPUs have been used to enhance the experience of computing platforms, most notably in gaming applications on PCs. Since then, GPU use cases have become an important semiconductor used in artificial intelligence. NVIDIA not only provides AI GPUs, but also provides CUDA, a software platform for AI model development and training. NVIDIA is also expanding its data center networking solutions to help tie GPUs together to handle complex workloads.
| company | P/E. | P/b | P/s | roe | EBITDA (billions of dollars) | Gross profit (billions of dollars) | Revenue growth |
|---|---|---|---|---|---|---|---|
| NVIDIA CORP | 52.73 | 49.64 | 29.32 | 31.13% | $22.86 | $26.16 | 93.61% |
| Broadcom Inc | 182.20 | 16.28 | 21.77 | 6.49% | $7.29 | $9.0 | 51.2% |
| Taiwan Semiconductor Manufacturing Company Co., Ltd. | 30.21 | 8.26 | 12.25 | 9.05% | $596.09 | $512.38 | 38.84% |
| Qualcomm | 18.49 | 7.05 | 4.75 | 11.46% | $3.21 | $5.78 | 18.69% |
| Advanced Micro Equipment Company | 110.48 | 3.11 | 7.01 | 1.36% | $1.55 | $3.42 | 17.57% |
| Arm Holtings plc | 211.63 | 26.41 | 46.20 | 1.83% | $0.11 | $0.81 | 4.71% |
| Texas Instruments Inc | 34.67 | 9.73 | 10.59 | 7.05% | $2.09 | $2.47 | -3.47% |
| Micron Technology Inc | 27.49 | 2.28 | 3.70 | 4.07% | $4.3 | $3.35 | 84.28% |
| Simulation equipment company | 62.46 | 2.89 | 10.84 | 1.36% | $1.12 | $1.42 | -10.06% |
| Overall power system company | 19.28 | 10.72 | 15.61 | 6.35% | $0.17 | $0.34 | 30.59% |
| Microchip Technology Inc | 91.32 | 4.64 | 5.94 | 1.24% | $0.34 | $0.67 | -48.37% |
| ASE Technology Holds Co Ltd | 20.70 | 2.37 | 1.25 | 3.16% | $28.59 | $26.43 | 3.85% |
| Stmicroelectronics NV | 13.57 | 1.16 | 1.59 | 1.95% | $0.74 | $1.23 | 2.15% |
| In a semiconductor company | 12.96 | 2.25 | 2.87 | 4.75% | $0.63 | $0.8 | -19.21% |
| First Solar Energy Company | 14.03 | 2.30 | 4.55 | 4.22% | $0.45 | $0.45 | 10.81% |
| United Microelectronics Company | 9.75 | 1.37 | 2.19 | 4.0% | $29.73 | $20.43 | 5.99% |
| Skyworks Solutions Inc | 19.89 | 1.62 | 2.58 | 0.95% | $0.18 | $0.43 | -15.9% |
| Lattice Semiconductor Company | 123.80 | 10.57 | 14.79 | 1.03% | $0.03 | $0.09 | -33.87% |
| Qorvo Inc | 275.93 | 2.13 | 1.96 | 1.22% | $0.14 | $0.39 | -14.67% |
| Rambus Inc | 40.71 | 6.39 | 13.16 | 5.76% | $0.07 | $0.12 | 10.71% |
| Average | 69.45 | 6.4 | 9.66 | 4.07% | $35.62 | $31.05 | 7.04% |
After a detailed analysis of NVIDIA, the following trends became apparent:
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Price and income rate are 52.73that’s 0.76 times The stock is less than the industry average and shows growth potential at a reasonable price, which is an interesting consideration for market participants.
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Higher book ratio 49.64 Relative to the industry average 7.76 times It is suggested that the company may be overvalued based on its book value.
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Price to sales ratio 29.32that’s 3.04x The industry average shows that the stock has the potential to be overvalued in its sales performance compared to its peers.
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Fair Return (ROE) 31.13% yes 27.06% It is higher than the industry average and emphasizes the effective use of equity to generate profits.
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Lower income before interest, taxes, depreciation and amortization (EBITDA) $22.86 billionthat’s 0.64x Below the industry average, the company may face lower profitability or financial challenges.
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Gross profit $26.16 billion yes 0.84 times Below its industry, which indicates that potential revenue is lower after considering production costs.
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The company is experiencing huge revenue growth with interest rates of 93.61%perform better than the industry average 7.04%.
Debt ratio
The debt-to-equity (D/E) ratio helps to assess a company’s capital structure and financial leverage.
Taking into account the debt-to-equity ratio in industry comparisons can simply assess the company’s financial health and risk profile, thus facilitating informed decision-making.
By considering the debt-to-equity ratio, NVIDIA can be compared with its top 4 peers, resulting in the following observations:
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Compared with its top 4 peers 0.16.
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This shows that the company has a more favorable balance between debt and equity, which can be seen by investors as a positive indicator.
Key Points
For NVIDIA, the PE is lower compared to peers, indicating a potential underestimation. High PB and PS ratios indicate market sentiment and income multiples. High ROE reflects effective utilization of shareholder equity, while low EBITDA and gross profit may indicate operational challenges. High income growth means that high-line performance is excellent compared to industry peers in the semiconductor and semiconductor equipment fields.
This article was generated by Benzinga’s automatic content engine and reviewed by editors.
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