NVIDIA vs Texas Instruments Which Is Superior?

NVIDIA and Texas Instruments are two leading companies in the semiconductor industry, each with a strong presence in the stock market. NVIDIA is known for its cutting-edge technology in graphics processing units (GPUs) and artificial intelligence, while Texas Instruments specializes in analog and embedded processing semiconductors. Both stocks have shown impressive growth in recent years, attracting investors looking to capitalize on the booming technology sector. This comparison explores the key differences and similarities between NVIDIA and Texas Instruments stocks.

NVIDIA or Texas Instruments ?

When comparing NVIDIA and Texas Instruments , 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 Texas Instruments .

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 Texas Instruments has a dividend yield of 2.75%. 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, Texas Instruments reports a 5-year dividend growth of 13.80% year and a payout ratio of 95.39%.

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 Texas Instruments 's P/E ratio at 35.23. 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 Texas Instruments 's P/B ratio is 10.13.

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 Texas Instruments 's is 0.19%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with NVIDIA's ROE at 116.71% and Texas Instruments 's ROE at 29.05%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $132.54 for NVIDIA and $188.30 for Texas Instruments . Over the past year, NVIDIA's prices ranged from $47.32 to $152.89, with a yearly change of 223.10%. Texas Instruments 's prices fluctuated between $155.46 and $220.39, with a yearly change of 41.77%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.