NVIDIA Corporation (NVDA)vs Intel Corporation (INTC)

Quick verdict

NVIDIA Corporation (NVDA) and Intel Corporation (INTC) appeal to different investors. On our six-factor framework, NVDA scores 4 and INTC scores 2. NVDA looks cheaper on the multiples that matter, while NVDA grows faster and INTC earns higher returns on capital. Overall, NVDA edges this comparison, but the right pick depends on whether you prioritise value, growth, income or balance-sheet safety.

2-year relative performance

At-a-glance comparison

Business model and revenue mix

NVIDIA Corporation operates in Semiconductors (Technology), while Intel Corporation sits in Semiconductors (Technology). Because both compete in the same sector, this is a direct head-to-head and the financial differences below are especially meaningful. NVDA carries a beta of 1.28 versus 1.66 for INTC, meaning INTC has historically been the more volatile of the two.

Valuation

On valuation, NVDA is the cheaper stock. NVDA trades on a forward P/E of 10.38 and EV/EBITDA of 24.59, against 40.53 and 24.36 for INTC. Price-to-sales is 18.21 vs 12.99, and free-cash-flow yield is 4.3% vs 3.5%. A higher multiple is only justified if the company can sustain faster growth or wider margins, which is exactly what the next sections test.

Growth profile

NVDA is the faster grower. NVDA has compounded revenue at 25.5% over three years with EPS growth of 38.2%, while INTC has delivered 17.2% revenue and 15.0% EPS growth. Growth like this is the single biggest driver of long-term returns, but it also tends to come with a richer valuation, so it must be weighed against the multiples above.

Profitability and quality

On profitability and quality, INTC is stronger. NVDA posts a 42.9% operating margin, 27.0% return on equity and 20.4% return on invested capital. INTC posts 37.7%, 50.5% and 34.6% respectively. Return on invested capital above roughly 15% is a hallmark of a durable competitive advantage, so this metric deserves particular attention.

Balance-sheet risk

NVDA has the safer balance sheet. NVDA carries net-debt/EBITDA of -0.17x with a current ratio of 2.18, versus 2.98x and 3.56 for INTC. Lower leverage gives a company more room to invest through a downturn and reduces the risk of dilution or distress.

Price performance and shareholder returns

Over the past year NVDA returned 75.1% against 103.1% for INTC; on a three-year annualised basis it is 3.0% vs 12.8%. NVDA yields 2.8% and INTC yields 3.7%. Past performance never guarantees future results, but the multi-year track record shows how the market has rewarded each business so far.

Which stock fits which investor

For value-oriented investors, NVDA is the better fit on today's multiples. Growth investors will likely prefer NVDA, which is expanding faster. Income investors should lean toward NVDA for its higher shareholder yield, while investors who prize quality-at-a-reasonable-price will favour INTC for its superior returns on capital. This is a comparison of facts, not a recommendation — your time horizon, risk tolerance and existing holdings should drive the final decision.

• Value: NVDA
• Growth: NVDA
• Income: NVDA
• Quality: INTC

Frequently asked questions

Is NVDA or INTC the better buy right now?

Neither is universally "better." NVDA scores 4 and INTC scores 2 on our six-factor framework. NVDA is cheaper, NVDA grows faster, and INTC is higher quality — so the right pick depends on your objective.

Which stock is cheaper, NVDA or INTC?

NVDA is the cheaper stock across forward P/E (10.38 vs 40.53), EV/EBITDA (24.59 vs 24.36) and price-to-sales (18.21 vs 12.99).

Which has grown faster, NVDA or INTC?

NVDA has the stronger growth profile, with three-year revenue CAGR of 25.5% for NVDA versus 17.2% for INTC.

Which stock pays a bigger dividend?

NVDA yields 2.8% and INTC yields 3.7%, so NVDA is the stronger income choice.

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