QUALCOMM vs NVIDIA Which Should You Buy?

Qualcomm and NVIDIA are two technology giants that have been competing in the stock market for years. Both companies are known for their innovation in the semiconductor industry, with Qualcomm specializing in mobile technologies and NVIDIA in graphics processing units. Investors have closely watched the performance of these stocks as they continue to introduce new products and technologies. The rivalry between Qualcomm and NVIDIA has created a dynamic market where both companies are constantly striving to outperform each other.

QUALCOMM or NVIDIA?

When comparing QUALCOMM 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 QUALCOMM 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. QUALCOMM has a dividend yield of 2.11%, while NVIDIA has a dividend yield of 0.03%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. QUALCOMM reports a 5-year dividend growth of 5.33% year and a payout ratio of 36.35%. On the other hand, NVIDIA reports a 5-year dividend growth of -23.48% year and a payout ratio of 1.09%.

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 QUALCOMM P/E ratio at 17.43 and NVIDIA's P/E ratio at 52.22. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. QUALCOMM P/B ratio is 6.73 while NVIDIA's P/B ratio is 49.98.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, QUALCOMM has seen a 5-year revenue growth of 1.06%, while NVIDIA's is 1.68%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with QUALCOMM 's ROE at 41.20% and NVIDIA's ROE at 116.71%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $156.63 for QUALCOMM and $132.54 for NVIDIA. Over the past year, QUALCOMM 's prices ranged from $134.94 to $230.63, with a yearly change of 70.91%. NVIDIA's prices fluctuated between $47.32 and $152.89, with a yearly change of 223.10%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.