Intel vs NVIDIA Which Is More Lucrative?

Intel Corporation and NVIDIA Corporation are two major players in the semiconductor industry, known for their cutting-edge technologies in computer hardware. While Intel dominates the market for central processing units (CPUs), NVIDIA is a leader in graphics processing units (GPUs) and artificial intelligence. Both companies have seen fluctuations in their stock prices due to competition, technological advancements, and market trends. Investors often compare Intel and NVIDIA stocks to weigh their potential for growth and profitability in the rapidly evolving tech industry.

Intel or NVIDIA?

When comparing Intel 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 Intel 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. Intel has a dividend yield of 1.5%, while NVIDIA has a dividend yield of 0.03%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Intel reports a 5-year dividend growth of -9.22% year and a payout ratio of -13.32%. 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 Intel P/E ratio at -6.74 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. Intel P/B ratio is 1.08 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, Intel has seen a 5-year revenue growth of -0.16%, while NVIDIA's is 1.68%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Intel's ROE at -14.98% and NVIDIA's ROE at 115.52%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $24.83 for Intel and $143.57 for NVIDIA. Over the past year, Intel's prices ranged from $18.51 to $51.28, with a yearly change of 177.04%. 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.