Inquiry Into NVIDIA's Competitor Dynamics In Semiconductors & Semiconductor Equipment Industry

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, evaluatingNVIDIANVDAand 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.Trending Investment OpportunitiesAdvertisementArrivedBuy shares of homes and vacation rentals for as little as $100.Get StartedWiserAdvisorGet matched with a trusted, local financial advisor for free.Get StartedPoint.comTap into your home's equity to consolidate debt or fund a renovation.Get StartedRobinhoodMove your 401k to Robinhood and get a 3% match on deposits.Get StartedNVIDIA BackgroundNvidia 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. 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.CompanyP/EP/BP/SROEEBITDA (in billions)Gross Profit (in billions)Revenue GrowthNVIDIA Corp53.2047.9727.4723.01%$22.58$26.6769.18%Broadcom Inc100.1418.5523.227.12%$8.02$10.220.16%Taiwan Semiconductor Manufacturing Co Ltd26.997.6511.128.19%$608.71$493.441.61%Advanced Micro Devices Inc106.884.108.621.23%$1.59$3.7435.9%Texas Instruments Inc41.9012.2512.677.08%$1.85$2.3111.14%Qualcomm Inc16.076.244.1910.3%$3.67$6.0416.93%ARM Holdings PLC194.5922.6038.723.17%$0.46$1.2133.73%Micron Technology Inc22.442.754.173.79%$4.33$3.5136.56%Analog Devices Inc66.493.4712.421.63%$1.2$1.6122.28%Monolithic Power Systems Inc19.6310.7914.994.17%$0.18$0.3539.24%STMicroelectronics NV27.351.632.450.32%$0.51$0.84-27.36%ON Semiconductor Corp41.483.113.84-5.78%$-0.37$0.29-22.39%ASE Technology Holding Co Ltd20.102.121.102.39%$27.16$24.8911.56%United Microelectronics Corp11.761.412.302.06%$23.86$15.455.91%First Solar Inc13.802.134.102.59%$0.35$0.346.35%Credo Technology Group Holding Ltd339.7224.8140.865.63%$0.04$0.11179.73%Skyworks Solutions Inc29.461.913.071.11%$0.22$0.39-8.87%Qorvo Inc152.122.412.260.93%$0.11$0.37-7.6%Universal Display Corp32.334.4511.433.93%$0.08$0.130.62%Lattice Semiconductor Corp145.1910.4315.190.71%$0.02$0.08-14.68%Average74.137.5211.413.19%$35.89$29.7520.04%By closely examining NVIDIA, we can identify the following trends:With a Price to Earnings ratio of53.2, which is0.72xless 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 of47.97, which is6.38xthe 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 of27.47, surpassing the industry average by2.41x, may indicate an aspect of overvaluation in terms of sales performance.The Return on Equity (ROE) of23.01%is19.82%above the industry average, highlighting efficient use of equity to generate profits.The company has lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of$22.58 Billion, which is0.63xbelow the industry average. This potentially indicates lower profitability or financial challenges.Compared to its industry, the company has lower gross profit of$26.67 Billion, which indicates0.9xbelow the industry average, potentially indicating lower revenue after accounting for production costs.The company's revenue growth of69.18%is notably higher compared to the industry average of20.04%, showcasing exceptional sales performance and strong demand for its products or services.Debt To Equity RatioThe 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.In terms of the Debt-to-Equity ratio, NVIDIA stands in comparison with its top 4 peers, leading to the following comparisons:NVIDIA demonstrates a stronger financial position compared to its top 4 peers in the sector.With a lower debt-to-equity ratio of0.12, the company relies less on debt financing and maintains a healthier balance between debt and equity, which can be viewed positively by investors.Key TakeawaysThe low P/E ratio suggests that NVIDIA may be undervalued compared to its peers in the Semiconductors & Semiconductor Equipment industry. However, the high P/B and P/S ratios indicate that the market values the company's assets and sales more highly. On the other hand, the high ROE, revenue growth, and low EBITDA and gross profit ratios suggest that NVIDIA is generating strong returns on equity and experiencing significant revenue growth, despite lower profitability margins.This article was generated by Benzinga's automated content engine and reviewed by an editor.NVDANVIDIA Corp$163.96-0.58%Stock Score Locked: Edge Members OnlyBenzinga Rankings give you vital metrics on any stock – anytime.Unlock RankingsEdge RankingsMomentum81.59Growth98.61QualityN/AValue6.40Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs© 2025 Benzinga.com. . .Posted In:NewsMarketsTrading IdeasBZI-IA