View all the top-rated stocks in the Semiconductor & Wireless Chip industry here. Our research shows that odds of success increase when one invests in stocks with an Overall Rating of Strong Buy or Buy. However, its higher profitability and relatively lower valuation make QCOM the better choice here. QCOM and NVDA are well-positioned to benefit from the industry tailwinds. įront-end semiconductor production is expected to meet demand in the coming quarters, driven by substantial investments in the industry. Of the 97 stocks in the B-rated Semiconductor & Wireless Chip industry, QCOM is ranked #13, while NVDA is ranked #61.īeyond what we’ve stated above, we have also rated the stocks for Stability, Momentum, Quality, and Growth. Its 54.66 non-GAAP forward P/E ratio is 118.5% higher than the industry average. On the other hand, NVDA has a D grade for Value. QCOM has a grade of B for Value, which is justified as its 16.23 non-GAAP forward P/E ratio is 35.1% lower than the 25.05 industry average. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.īoth the stocks have a B Sentiment grade, consistent with their impressive revenue and EPS growth estimates. In contrast, NVDA has an overall rating of C, which translates to Neutral. QCOM has an overall B rating, which equates to Buy in our proprietary POWR Ratings system. Thus, QCOM is a relatively affordable stock here. Also, 51.36 NVDA’s forward EV/EBITDA ratio is 76.7% higher than QCOM’s 11.96. In terms of forward EV/Sales, NVDA is currently trading at 21.13x, which is 77.9% higher than QCOM, which is currently trading at 4.66x. Also, QCOM’s trailing-12-month revenue is 1.49 times what NVDA generates.įurthermore, QCOM’s ROE, ROA, and ROTC of 160.32%, 18.17%, and 29.54%, respectively, compare with NVDA’s 40.38%, 14.36%, and 16.50%. QCOM is more profitable with a 23.32% levered FCF margin, versus NVDA’s 21.16%. Moreover, QCOM’s EPS is expected to grow 32.2% per annum over the next five years. The company’s EPS is expected to grow 55.9% in the current quarter, 97.1% in the current year, and 11.7% in the next year. Analysts expect the company’s revenue to increase 36.3% in the current quarter, 52.5% in the current year, and 10.3% in the next year. In comparison, QCOM’s revenues and EBITDA grew at CAGRs of 12.7% and 21.1%, respectively, over the past three years. Furthermore, its EPS is expected to grow 32.6% per annum over the next five years. The company’s EPS is expected to grow 50.7% in the current quarter, 65.2% in the current year, and 12.3% in the next year. Analysts expect NVDA’s revenue to increase 44.3% in the current quarter, 54.5% in the current year, and 13% in the next year. NVDA’s revenues and EBITDA have grown at CAGRs of 22.6% and 22.3%, respectively, over the past three years. In terms of their past year’s performance, NVDA is the winner with 78.8% gains versus QCOM’s 19.3%.Ĭlick here to checkout our Semiconductor Industry Report for 2021 Also, NVDA’s 69.1% gains year-to-date compare with QCOM’s 12.1% decline/. NVDA’s shares have gained 74.7% in price over the past six months, while QCOM has returned 5.3% over this period. Both NVDA and QCOM are well-known names in the industry and are expected to gain substantially from the industry’s growth. In addition, 5G semiconductor revenues are expected to increase by 128% year-over-year, while total mobile phone semiconductors are expected to grow by 28.5%. According to an International Data Corporation (IDC)’s report, dedicated semiconductor foundries have been selected for the rest of the year, with capacity utilization at nearly 100%, which should boost production. However, with federal investments and initiatives by the industry giants, the industry is expected to rebound soon. The semiconductor shortage is now a global concern, creating production bottlenecks in several industries. It operates through three segments: Qualcomm CDMA Technologies (QCT) Qualcomm Technology Licensing (QTL) and Qualcomm Strategic Initiatives (QSI). In comparison, QUALCOMM Incorporated ( QCOM ) in San Diego, Calif., develops and commercializes foundational technologies and products used in mobile devices and other wireless products. It operates in two segments: Graphics and Compute & Networking. Santa Clara, Calif.-based NVIDIA Corporation ( NVDA ) is a visual computing company worldwide.