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Competitor Analysis: Evaluating NVIDIA And Competitors In Semiconductors & Semiconductor Equipment Industry

, Benzinga - 11:00 AM ET 3/13/2025 Technology

In the ever-changing and fiercely competitive business landscape, conducting thorough company analysis is crucial for investors and industry experts. In this article, we will undertake a comprehensive industry comparison, evaluating NVIDIA ( NVDA ) and its primary competitors in the Semiconductors & Semiconductor Equipment industry. By closely examining key financial metrics, market position, and growth prospects, our aim is to provide valuable insights for investors and shed light on company's performance within the industry.

NVIDIA Background

Nvidia Corp ( NVDA ) is an upfront developer of graphics processing unit and a full-stack computing infrastructure company with data-center-scale offerings that are reshaping industry. Traditionally, GPU were used to enhanvce experience,now Nvidia ( NVDA ) offers AI GPUs, and also a software platform, Cuda, used for AI model development and training. The company is also expanding its data center networking solutions, helping to tie GPUs together to handle complex workloads. such as AI, model training and inference, data analytics, scientific computing, and 3D graphics, with vertical-specific optimizations to address industries ranging from healthcare and telecom to automotive and manufacturing.

Company	P/E	P/B	P/S	ROE	EBITDA (in billions)	Gross Profit (in billions)	Revenue Growth
NVIDIA Corp ( NVDA )	39.37	35.60	22	30.42%	$25.82	$28.72	77.94%
Taiwan Semiconductor Manufacturing Co Ltd	25.76	7.05	10.44	9.05%	$596.09	$512.38	38.84%
Broadcom Inc	89.92	13.09	17.17	8.01%	$7.29	$9.0	6.13%
Qualcomm Inc	16.48	6.29	4.24	11.97%	$4.23	$6.51	17.45%
Advanced Micro Devices Inc	100.79	2.84	6.40	0.84%	$1.69	$3.88	24.16%
Texas Instruments Inc	33.79	9.46	10.32	7.02%	$1.92	$2.31	-1.72%
ARM Holdings PLC	148.29	18.51	32.37	4.05%	$0.22	$0.95	19.3%
Micron Technology Inc	27.40	2.28	3.69	4.07%	$4.3	$3.35	84.28%
Analog Devices Inc	66.01	2.92	11.03	1.11%	$1.03	$1.43	-3.56%
Monolithic Power Systems Inc	15.93	8.87	12.90	52.73%	$0.17	$0.34	36.93%
Microchip Technology Inc	91.05	4.63	5.92	-0.87%	$0.21	$0.56	-41.89%
STMicroelectronics NV	14.81	1.26	1.74	1.95%	$0.89	$1.25	-22.42%
ASE Technology Holding Co Ltd	22.11	2.15	1.18	2.94%	$28.59	$26.43	1.35%
ON Semiconductor Corp	11.80	2.05	2.62	4.37%	$0.62	$0.78	-14.65%
United Microelectronics Corp	10.60	1.49	2.37	4.0%	$29.73	$20.43	5.99%
First Solar Inc	11.32	1.83	3.48	5.05%	$0.58	$0.57	30.68%
Skyworks Solutions Inc	20.88	1.70	2.71	2.54%	$0.31	$0.44	-11.07%
Lattice Semiconductor Corp	133.20	11.36	15.91	2.33%	$0.02	$0.07	-31.17%
Credo Technology Group Holding Ltd	1584.33	13.05	25.60	4.95%	$0.03	$0.09	154.44%
Universal Display Corp	32	4.37	10.95	2.87%	$0.06	$0.12	2.51%
Qorvo Inc	247.57	1.92	1.76	1.22%	$0.14	$0.39	-14.67%
Average	135.2	5.86	9.14	6.51%	$33.91	$29.56	14.05%

After examining NVIDIA ( NVDA ), the following trends can be inferred:

The stock's Price to Earnings ratio of 39.37 is lower than the industry average by 0.29x, suggesting potential value in the eyes of market participants.
It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 35.6 which exceeds the industry average by 6.08x.
The Price to Sales ratio of 22.0, which is 2.41x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.
The Return on Equity (ROE) of 30.42% is 23.91% above the industry average, highlighting efficient use of equity to generate profits.
The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $25.82 Billion is 0.76x below the industry average, suggesting potential lower profitability or financial challenges.
The company has lower gross profit of $28.72 Billion, which indicates 0.97x below the industry average. This potentially indicates lower revenue after accounting for production costs.
The company is experiencing remarkable revenue growth, with a rate of 77.94%, outperforming the industry average of 14.05%.

Debt To Equity Ratio

debt to equity

The debt-to-equity (D/E) ratio assesses the extent to which a company relies on borrowed funds compared 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.

When assessing NVIDIA ( NVDA ) against its top 4 peers using the Debt-to-Equity ratio, the following comparisons can be made:

When considering the debt-to-equity ratio, NVIDIA ( NVDA ) exhibits a stronger financial position compared to its top 4 peers.
This indicates that the company has a favorable balance between debt and equity, with a lower debt-to-equity ratio of 0.13, which can be perceived as a positive aspect by investors.

Key Takeaways

For NVIDIA ( NVDA ), the PE ratio is low compared to peers, indicating potential undervaluation. The high PB and PS ratios suggest strong market sentiment and revenue multiples. The high ROE reflects efficient use of shareholder equity. The low EBITDA and gross profit may indicate operational challenges. The high revenue growth signifies strong top-line performance compared to industry peers in the Semiconductors & Semiconductor Equipment sector.

This article was generated by Benzinga's automated content engine and reviewed by an editor.