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Investigating NVIDIA's Standing In Semiconductors & Semiconductor Equipment Industry Compared To Competitors

, Benzinga - 11:00 AM ET 3/28/2025 Technology

In the dynamic 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 ( 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 )	37.90	34.27	21.18	30.42%	$25.82	$28.72	77.94%
Taiwan Semiconductor Manufacturing Co Ltd	24.59	6.73	9.97	9.05%	$596.09	$512.38	38.84%
Broadcom Inc	79.62	11.59	15.20	8.01%	$8.54	$10.14	24.71%
Qualcomm Inc	17.04	6.50	4.38	11.97%	$4.23	$6.51	17.45%
Advanced Micro Devices Inc	106.65	3	6.77	0.84%	$1.69	$3.88	24.16%
Texas Instruments Inc	34.76	9.73	10.62	7.02%	$1.92	$2.31	-1.72%
ARM Holdings PLC	147.99	18.47	32.30	4.05%	$0.22	$0.95	19.3%
Analog Devices Inc	66.75	2.95	11.16	1.11%	$1.03	$1.43	-3.56%
Micron Technology Inc	21.81	2.09	3.28	3.32%	$3.95	$2.96	38.27%
Monolithic Power Systems Inc	16.44	9.15	13.31	52.73%	$0.17	$0.34	36.93%
Microchip Technology Inc	89.11	4.53	5.80	-0.87%	$0.21	$0.56	-41.89%
STMicroelectronics NV	13.78	1.17	1.62	1.95%	$0.89	$1.25	-22.42%
ASE Technology Holding Co Ltd	21.34	2.09	1.13	2.94%	$28.59	$26.43	1.35%
ON Semiconductor Corp	12.06	2.10	2.67	4.37%	$0.62	$0.78	-14.65%
United Microelectronics Corp	11.74	1.46	2.39	2.28%	$29.73	$20.43	-0.16%
First Solar Inc	10.53	1.70	3.24	5.05%	$0.58	$0.57	30.68%
Skyworks Solutions Inc	20.40	1.66	2.65	2.54%	$0.31	$0.44	-11.07%
Lattice Semiconductor Corp	134.43	11.45	16.06	2.33%	$0.02	$0.07	-31.17%
Universal Display Corp	32.20	4.40	11.02	2.87%	$0.06	$0.12	2.51%
Credo Technology Group Holding Ltd	1414.33	11.65	22.85	4.95%	$0.03	$0.09	154.44%
Qorvo Inc	263.18	2.04	1.87	1.22%	$0.14	$0.39	-14.67%
Average	126.94	5.72	8.91	6.39%	$33.95	$29.6	12.37%

When closely examining NVIDIA ( NVDA ), the following trends emerge:

The stock's Price to Earnings ratio of 37.9 is lower than the industry average by 0.3x, suggesting potential value in the eyes of market participants.
The elevated Price to Book ratio of 34.27 relative to the industry average by 5.99x suggests company might be overvalued based on its book value.
The stock's relatively high Price to Sales ratio of 21.18, surpassing the industry average by 2.38x, may indicate an aspect of overvaluation in terms of sales performance.
With a Return on Equity (ROE) of 30.42% that is 24.03% above the industry average, it appears that the company exhibits efficient use of equity to generate profits.
With lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $25.82 Billion, which is 0.76x below the industry average, the company may face 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's revenue growth of 77.94% is notably higher compared to the industry average of 12.37%, showcasing exceptional sales performance and strong demand for its products or services.

Debt To Equity Ratio

debt to equity

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.

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

The PE, PB, and PS ratios for NVIDIA ( NVDA ) are indicating that the stock is relatively undervalued compared to its peers in the Semiconductors & Semiconductor Equipment industry. On the other hand, the high ROE, low EBITDA, low gross profit, and high revenue growth suggest that NVIDIA ( NVDA ) is performing well and has strong growth potential within the industry sector.

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