HPC vs NVIDIA Which Is More Promising?

High Performance Computing (HPC) and NVIDIA stocks are both popular choices for investors looking to capitalize on the growing demand for advanced technology in various industries. HPC encompasses supercomputers, servers, and other high-speed computing solutions, while NVIDIA specializes in graphics processing units (GPUs) used for gaming, artificial intelligence, and data centers. Both sectors have experienced significant growth in recent years, but the competition between HPC and NVIDIA stocks remains fierce as they continue to innovate and capture market share.

HPC or NVIDIA?

When comparing HPC and NVIDIA, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between HPC and NVIDIA.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. HPC has a dividend yield of -%, while NVIDIA has a dividend yield of 0.03%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. HPC reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, NVIDIA reports a 5-year dividend growth of -23.48% year and a payout ratio of 1.02%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with HPC P/E ratio at 8.24 and NVIDIA's P/E ratio at 67.35. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. HPC P/B ratio is 0.19 while NVIDIA's P/B ratio is 61.39.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, HPC has seen a 5-year revenue growth of 0.10%, while NVIDIA's is 1.68%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with HPC's ROE at 2.21% and NVIDIA's ROE at 115.52%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are HK$0.06 for HPC and $143.57 for NVIDIA. Over the past year, HPC's prices ranged from HK$0.03 to HK$0.08, with a yearly change of 151.61%. NVIDIA's prices fluctuated between $45.01 and $149.77, with a yearly change of 232.75%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.