Nvidia vs Intel

Investing in stocks can be highly profitable. Stocks have consistently provided profits to investors when the investments are based on extensive market research. One of the best features of stocks is that they allow investors from every country to invest and make profits. For example, if you are an investor who invests in Indian stocks, you can easily use your demat account to diversify your portfolio by investing in US stocks. The US stock market is one of the most sought-after platforms that lists the stocks of the biggest companies worldwide. Some companies even have a market value higher than the entire economy of India. In this age where Artificial Intelligence is at its peak, you can invest in stocks of two companies leading the AI race.

This blog will help you understand NVIDIA vs Intel so that you can choose which stock to add to your portfolio when looking to invest in US stocks.

NVIDIA is most known for manufacturing chips to offer better graphics across segments. With its flagship GeForce GPUs (GeForce series), professional graphics (Quadro series), and data centres (A100 and H100 Tensor Core GPUs). The company has also forayed into the AI sector with its AI hardware, such as Grace Hopper Superchip for data centres and DGX systems.

On the other hand, Intel operates through various segments, including data centres, client computing, etc. Intel's products include CPUs for personal computers (Core series), data centres (Xeon series), and emerging markets such as AI and edge computing. They are also developing new GPUs like the Intel Arc series to compete with NVIDIA.

NVIDIA vs Intel: Financial performance

NVIDIA has emerged as the leader in the race for AI, developing high-end AI chips that are considered among the best-ever developed and produced. NIVDIA’s flagship GPUs, mainly the A100 and H100 Tensor Core GPUs, are widely used by companies worldwide to complete AI and machine learning tasks. The GPUs are high-performing and provide the utmost efficiency. Furthermore, the company’s CUDA (Compute Unified Device Architecture) programming model has become a common standard in the industry.

Furthermore, NVIDIA's AI chips are widely used by companies in sectors such as automotive, healthcare, finance, and more. Because of its high-end products, the company has witnessed increased revenues and profits and has also partnered with major tech companies to improve its market reach.

On the other hand, unlike NVIDIA’s heightened AI focus, Intel has been broadening its horizon to adapt to various technologies apart from AI, such as modernising the 5G, enterprise infrastructure and edge computing. It is largely focusing on data centres by offering a range of products such as Xeon CPUs and Intel Optane memory. The company is also developing technologies to support cloud computing and high-performance computing.

Intel has also launched its Quantum Computing Initiative to focus on quantum computing. The company is working on developing quantum processors to be a leading player in this field. Furthermore, it has launched its Intel Arc graphics series to enter the GPU market and compete directly with NVIDIA.

One of the most important factors to consider in NVIDIA vs Intel is a comparison of their financial metrics. NVIDIA has a higher EV/EBITDA multiple of 54.29, reflecting that it has a higher market dominance and growth potential than Intel, as it only has a multiple of 21.13. Although both companies have a high cash flow of $25.98 billion (NVIDIA) and $25.03 billion (Intel), NVIDIA's cash and cash equivalents are slightly higher than those of Intel. Furthermore, NVIDIA has a higher interest coverage ratio of 132.59, showcasing that it can effectively meet its interest obligations.

NVIDIA and Intel both have witnessed an extensive rally in their stock prices as more and more businesses opt for emerging technologies such as AI. However, when compared with each other, NVIDIA has come on top as its stock has witnessed a staggering rally of 236.25% in the last year. On the other hand, Intel stock has only witnessed a modest rally of 66.76%. The lower stock market rally of Intel stock is owed to its recent problems related to the supply chain.

NVIDIA continues to enhance its AI hardware capabilities with its GPUs and specialised processors, such as the H100 Tensor Core GPUs. These processors are specifically designed for AI and machine learning tasks. NVIDIA has established a new subsidiary business to make AI chips and is continuing its investments in AI through acquisitions and partnerships.

On the other hand, Intel is focusing more on broadening its focus beyond traditional CPU markets. The company is investing in AI through its specialised AI processors like Habana Labs’ AI accelerators and Gaudi. Furthermore, it is entering the GPU market through its Arc graphics series to diversify its product offerings. It is also focusing on enhancing its data centres to provide cloud-computing solutions to various companies worldwide.

NVIDIA and Intel are both leading companies when it comes to processors and GPUs. However, both companies have added artificial intelligence to their product offerings to ensure that they remain in the race of AI to offer solutions to companies looking to complete AI and machine learning tasks. As an investor, you can analyse NVIDIA vs Intel to decide which stock can give you better returns or create a mix of both stocks for a better investment approach.