In the ever-evolving landscape of technology, NVIDIA Corporation (NVDA) and Analog Devices, Inc. (ADI) stand out as key players within the semiconductor industry. Both companies are engaged in innovative solutions but cater to different aspects of the market. NVIDIA specializes in graphics and AI computing, while Analog Devices focuses on analog and mixed-signal processing. By comparing these two giants, I aim to uncover which company presents a more compelling opportunity for investors seeking growth and stability in their portfolios.
Table of contents
Company Overview
NVIDIA Corporation Overview
NVIDIA Corporation, a leader in the semiconductor industry, is renowned for its innovations in graphics processing units (GPUs) and AI-driven computing solutions. Founded in 1993 and headquartered in Santa Clara, California, NVIDIA’s mission is to enhance the computing experience through advanced technology. The company’s diverse product offerings include GeForce GPUs for gaming, data center platforms for artificial intelligence and high-performance computing, and automotive solutions for autonomous driving. With a market capitalization of approximately $4.3T, NVIDIA has positioned itself at the forefront of the AI and gaming sectors, serving a wide range of clients from cloud service providers to automotive manufacturers.
Analog Devices, Inc. Overview
Analog Devices, Inc. is a prominent player in the semiconductor market, specializing in integrated circuits and signal processing technologies. Established in 1965 and based in Wilmington, Massachusetts, Analog Devices aims to bridge the real and digital worlds through high-performance analog and mixed-signal solutions. The company provides a broad array of products, including data converters, power management ICs, and sensors, catering to sectors such as automotive, industrial, and consumer electronics. With a market cap of around $131.2B, Analog Devices has firmly established its presence in diverse industries, enhancing performance through innovative technology.
Key similarities and differences
Both NVIDIA and Analog Devices operate within the semiconductor industry, focusing on advanced technology solutions. However, NVIDIA predominantly emphasizes graphics and AI applications, while Analog Devices specializes in analog and mixed-signal devices for diverse market sectors. Their distinct product focuses reflect differing strategic approaches within the broader technology landscape.
Income Statement Comparison
In this section, I present an income statement comparison between NVIDIA Corporation (NVDA) and Analog Devices, Inc. (ADI) for their most recent fiscal years.
| Metric | NVDA | ADI |
|---|---|---|
| Market Cap | 4.30T | 131.18B |
| Revenue | 130.50B | 11.02B |
| EBITDA | 86.14B | 5.03B |
| EBIT | 84.27B | 3.03B |
| Net Income | 72.88B | 2.27B |
| EPS | 2.97 | 4.59 |
| Fiscal Year | 2025 | 2025 |
Interpretation of Income Statement
In the most recent fiscal year, NVIDIA demonstrated remarkable growth in both revenue and net income, with revenue reaching 130.50B, a significant increase compared to previous years. The EBITDA margin suggests strong operational efficiency, while net income reflects robust profitability. Conversely, Analog Devices reported stable revenue of 11.02B and a net income of 2.27B, indicating steady performance in a competitive market. While NVIDIA’s growth trajectory appears to have moderated, its margins remain impressive, suggesting efficient cost management amidst ongoing market fluctuations.
Financial Ratios Comparison
Below is a comparative table highlighting the most recent revenue and financial ratios for NVIDIA Corporation (NVDA) and Analog Devices, Inc. (ADI).
| Metric | NVDA | ADI |
|---|---|---|
| ROE | 91.87% | 6.70% |
| ROIC | 75.28% | 5.55% |
| P/E | 39.90 | 51.05 |
| P/B | 36.66 | 3.42 |
| Current Ratio | 4.44 | 2.19 |
| Quick Ratio | 3.88 | 1.68 |
| D/E | 0.13 | 0.25 |
| Debt-to-Assets | 9.20% | 17.90% |
| Interest Coverage | 329.77 | 9.45 |
| Asset Turnover | 1.17 | 0.23 |
| Fixed Asset Turnover | 16.16 | 0.00 |
| Payout ratio | 1.14% | 84.88% |
| Dividend yield | 0.03% | 1.66% |
Interpretation of Financial Ratios
In comparing NVIDIA and Analog Devices, NVIDIA displays strong profitability metrics, notably a very high ROE and ROIC, indicating efficient use of equity and capital. The current and quick ratios suggest excellent short-term liquidity. Conversely, Analog Devices presents a more conservative financial stance with higher debt ratios and a much lower ROE, indicating potential concerns about its growth and capital efficiency. The payout ratio for ADI suggests significant returns to shareholders, but also raises questions about reinvestment capabilities compared to NVDA.
Dividend and Shareholder Returns
NVIDIA Corporation (NVDA) has a minimal dividend payout ratio of 1.14%, reflecting a dividend yield of only 0.0287%, indicating a focus on growth and reinvestment. They do engage in share buybacks, which can enhance shareholder value but may pose risks if excessive. In contrast, Analog Devices, Inc. (ADI) offers a more substantial dividend yield of 1.66% with a payout ratio of 84.87%, suggesting a strong commitment to returning cash to shareholders. This strategy, supported by stable cash flows, appears to foster sustainable long-term value creation.
Strategic Positioning
NVIDIA Corporation (NVDA) holds a dominant position in the semiconductor market with a commanding market cap of $4.30T and a diverse product range that includes GPUs for gaming and AI applications. They face competitive pressure from Analog Devices, Inc. (ADI), which specializes in analog and mixed-signal technologies, with a market cap of $131.18B. Both companies are susceptible to technological disruptions, particularly in AI and power management sectors, necessitating ongoing innovation to maintain their market shares.
Stock Comparison
In the past year, both NVIDIA Corporation (NVDA) and Analog Devices, Inc. (ADI) have experienced significant price movements, reflecting their respective trading dynamics and market sentiment.
Trend Analysis
NVIDIA Corporation (NVDA) Over the past year, NVDA’s stock price has increased by 260.49%, indicating a bullish trend. The highest price reached was 202.49, while the lowest was 49.1. However, the recent trend analysis from September 14, 2025, to November 30, 2025, shows a slight decrease of 0.46%, suggesting a neutral trend in the short term. The overall acceleration status indicates deceleration, with a standard deviation of 34.99 reflecting notable volatility in the stock’s price movements.
Analog Devices, Inc. (ADI) ADI has seen a 42.24% increase in its stock price over the past year, also indicating a bullish trend. The stock’s highest price was 265.34, and the lowest was 164.6. In the recent analysis period from September 14, 2025, to November 30, 2025, the stock price increased by 8.21%, maintaining a bullish trend. However, the trend slope indicates slight deceleration, and the standard deviation of 19.28 suggests moderate volatility in price fluctuations.
In summary, while both stocks demonstrate long-term bullish trends, their recent performance indicates varying degrees of short-term stability and volatility.
Analyst Opinions
Recent analyst recommendations reflect cautious optimism for NVIDIA Corporation (NVDA) with a rating of B+. Analysts highlight strong return on equity and assets, indicating robust operational efficiency. In contrast, Analog Devices, Inc. (ADI) holds a B rating, with favorable scores in discounted cash flow and return on assets, though slightly lower in debt management. The consensus for NVDA remains a strong buy, while ADI leans towards a hold. As an investor, I recommend closely monitoring these trends as they may impact future performance.
Stock Grades
In this section, I present the latest stock ratings for NVIDIA Corporation (NVDA) and Analog Devices, Inc. (ADI), providing insights into their current market positions based on recent analyses.
NVIDIA Corporation Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Wedbush | maintain | Outperform | 2025-11-20 |
| Benchmark | maintain | Buy | 2025-11-20 |
| Deutsche Bank | maintain | Hold | 2025-11-20 |
| Bernstein | maintain | Outperform | 2025-11-20 |
| Citigroup | maintain | Buy | 2025-11-20 |
| Rosenblatt | maintain | Buy | 2025-11-20 |
| Truist Securities | maintain | Buy | 2025-11-20 |
| Mizuho | maintain | Outperform | 2025-11-20 |
| JP Morgan | maintain | Overweight | 2025-11-20 |
| Cantor Fitzgerald | maintain | Overweight | 2025-11-20 |
Analog Devices, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Morgan Stanley | maintain | Overweight | 2025-11-26 |
| JP Morgan | maintain | Overweight | 2025-11-26 |
| Evercore ISI Group | maintain | Outperform | 2025-11-26 |
| Benchmark | maintain | Buy | 2025-11-26 |
| B of A Securities | maintain | Buy | 2025-11-26 |
| Baird | maintain | Outperform | 2025-11-26 |
| Wells Fargo | maintain | Equal Weight | 2025-11-26 |
| Truist Securities | maintain | Hold | 2025-11-26 |
| Cantor Fitzgerald | maintain | Overweight | 2025-09-30 |
| Benchmark | maintain | Buy | 2025-08-21 |
Overall, both NVIDIA and Analog Devices have received consistent ratings from various reputable grading companies, indicating a stable outlook with a mix of “Buy,” “Outperform,” and “Hold” recommendations. Investors may find the continued confidence from analysts noteworthy as it reflects a stable market sentiment around these stocks.
Target Prices
Currently, I have reliable target price data for two companies.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| NVIDIA Corporation | 352 | 200 | 261.77 |
| Analog Devices, Inc. | 300 | 258 | 283.58 |
For NVIDIA Corporation, the consensus target price of 261.77 is significantly above its current price of 176.51, indicating positive expectations from analysts. Similarly, Analog Devices has a consensus of 283.58, which also exceeds its current price of 265.34, suggesting optimism about its future performance.
Strengths and Weaknesses
The following table summarizes the strengths and weaknesses of NVIDIA Corporation (NVDA) and Analog Devices, Inc. (ADI) based on their recent performance metrics.
| Criterion | NVIDIA Corporation (NVDA) | Analog Devices, Inc. (ADI) |
|---|---|---|
| Diversification | Moderate | High |
| Profitability | High (Net Profit Margin: 55.8%) | Moderate (Net Profit Margin: 20.6%) |
| Innovation | Strong | Moderate |
| Global presence | Extensive | Moderate |
| Market Share | Leading | Strong |
| Debt level | Low (Debt to Equity: 0.13) | Moderate (Debt to Equity: 0.25) |
In summary, NVIDIA excels in profitability and innovation, thriving in a leading market position, while Analog Devices showcases strong diversification and moderate profitability. Investors should weigh these factors based on their risk tolerance and investment strategy.
Risk Analysis
The following table outlines key risks associated with NVIDIA Corporation (NVDA) and Analog Devices, Inc. (ADI) for the recent fiscal year.
| Metric | NVIDIA Corporation | Analog Devices, Inc. |
|---|---|---|
| Market Risk | High | Moderate |
| Regulatory Risk | Moderate | Moderate |
| Operational Risk | Moderate | Moderate |
| Environmental Risk | Moderate | High |
| Geopolitical Risk | High | Moderate |
In summary, both companies face significant market and geopolitical risks, particularly NVIDIA, given its exposure to volatile semiconductor markets and international operations. Analog Devices also faces heightened environmental risks due to its manufacturing processes.
Which one to choose?
When comparing NVIDIA (NVDA) and Analog Devices (ADI), both companies exhibit strong fundamentals. NVIDIA showcases a higher gross profit margin of 75% and a net profit margin of 56%, indicating robust profitability. In contrast, Analog Devices has lower margins at 61% and 21%, respectively. Despite this, ADI maintains a solid current ratio of 2.19 and a better price-to-earnings ratio of 51 compared to NVDA’s 39, which may appeal to value-oriented investors.
Analyst ratings favor NVDA slightly with a B+ grade versus ADI’s B, reflecting better growth potential. The stock trends indicate a bullish outlook for both, with NVDA showing a significant price increase of 260% over the past year. However, NVDA’s recent trend shows some price deceleration, while ADI displays consistent growth.
Investors focused on growth may prefer NVIDIA, whereas those prioritizing stability and more conservative valuation metrics might find Analog Devices appealing. It’s essential to consider potential risks such as market volatility and competition in the semiconductor industry.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of NVIDIA Corporation and Analog Devices, Inc. to enhance your investment decisions:
