NVIDIA vs Intel Which Is More Attractive?

NVIDIA and Intel, two of the largest semiconductor companies in the world, have been in constant competition for market share and investor interest. While both companies have seen significant growth in recent years, their stocks have responded differently to various factors such as product releases, financial performance, and industry trends. Investors are constantly evaluating the strengths and weaknesses of each company to determine which stock offers the best long-term potential for growth and profitability.

NVIDIA or Intel?

When comparing NVIDIA and Intel, 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 NVIDIA and Intel.

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. NVIDIA has a dividend yield of 0.03%, while Intel has a dividend yield of 1.84%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. NVIDIA reports a 5-year dividend growth of -23.48% year and a payout ratio of 1.09%. On the other hand, Intel reports a 5-year dividend growth of -9.22% year and a payout ratio of -13.32%.

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 NVIDIA P/E ratio at 52.22 and Intel's P/E ratio at -5.47. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. NVIDIA P/B ratio is 49.98 while Intel's P/B ratio is 0.88.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, NVIDIA has seen a 5-year revenue growth of 1.68%, while Intel's is -0.16%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with NVIDIA's ROE at 116.71% and Intel's ROE at -14.98%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $132.54 for NVIDIA and $20.25 for Intel. Over the past year, NVIDIA's prices ranged from $47.32 to $152.89, with a yearly change of 223.10%. Intel's prices fluctuated between $18.51 and $51.28, with a yearly change of 177.04%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.