In the fast-evolving semiconductor industry, two companies stand out: NVIDIA Corporation (NVDA) and CEVA, Inc. (CEVA). Both firms are at the forefront of innovation, yet they focus on distinct segments of the market. NVIDIA is renowned for its powerful graphics and AI solutions, while CEVA specializes in licensing advanced wireless connectivity and smart sensing technologies. In this article, I will analyze these companies to help you determine which one presents the most compelling investment opportunity.
Table of contents
Company Overview
NVIDIA Corporation Overview
NVIDIA Corporation, established in 1993 and headquartered in Santa Clara, California, is a leading player in the semiconductor industry, primarily known for its high-performance graphics processing units (GPUs). The company’s mission is to enable the future of computing by delivering innovative solutions for gaming, professional visualization, data center, and automotive markets. NVIDIA’s diverse product portfolio includes GeForce GPUs for gaming, data center platforms for AI and accelerated computing, and various automotive AI technologies. With a market cap of approximately $4.30T, NVIDIA is well-positioned to capitalize on the growing demand for AI and machine learning applications, solidifying its leadership in the technology sector.
CEVA, Inc. Overview
Founded in 1999 and based in Rockville, Maryland, CEVA, Inc. specializes in licensing wireless connectivity and smart sensing technologies to semiconductor and original equipment manufacturer (OEM) companies globally. The company’s mission is to empower innovation in various industries through its advanced digital signal processors and AI processors. CEVA’s product offerings include technologies for 5G mobile baseband processing, computer vision, and voice recognition, catering to markets such as mobile, IoT, automotive, and robotics. With a market cap of around $519M, CEVA serves as a crucial enabler for companies seeking to integrate sophisticated processing capabilities into their products.
Key similarities and differences
Both NVIDIA and CEVA operate within the semiconductor industry, focusing on advanced technology solutions. However, their business models differ significantly: NVIDIA primarily develops and sells its proprietary hardware and software, whereas CEVA focuses on licensing its technologies to OEMs. This distinction highlights NVIDIA’s direct market engagement compared to CEVA’s more collaborative approach with other manufacturers.
Income Statement Comparison
The following table presents a comparison of key income statement metrics for NVIDIA Corporation and CEVA, Inc. for the most recent fiscal year, providing insights into their financial performance.
| Metric | NVIDIA Corporation (NVDA) | CEVA, Inc. (CEVA) |
|---|---|---|
| Market Cap | 4.30T | 518M |
| Revenue | 130.50B | 106.94M |
| EBITDA | 86.14B | -3.41M |
| EBIT | 84.27B | -7.55M |
| Net Income | 72.88B | -8.79M |
| EPS | 2.97 | -0.37 |
| Fiscal Year | 2025 | 2024 |
Interpretation of Income Statement
In 2025, NVIDIA exhibited robust growth with a remarkable revenue increase to 130.50B, translating into a significant net income of 72.88B, underscoring strong operational efficiency. In contrast, CEVA faced challenges, reporting a decline in revenue to 106.94M and a net loss of 8.79M. NVIDIA’s impressive EBITDA margin reflects its solid market position, while CEVA’s negative EBITDA indicates financial strain. Overall, NVIDIA’s performance highlights a thriving enterprise, whereas CEVA must address its operational inefficiencies to regain profitability.
Financial Ratios Comparison
The following table provides a comparison of the most recent revenue and financial ratios for NVIDIA Corporation (NVDA) and CEVA, Inc. (CEVA).
| Metric | NVDA | CEVA |
|---|---|---|
| ROE | 91.87% | -3.30% |
| ROIC | 75.28% | -8.56% |
| P/E | 39.90 | -44.90 |
| P/B | 36.66 | 2.79 |
| Current Ratio | 4.44 | 7.09 |
| Quick Ratio | 3.88 | 7.09 |
| D/E | 0.13 | 0.02 |
| Debt-to-Assets | 0.09 | 0.02 |
| Interest Coverage | 329.77 | 0 |
| Asset Turnover | 1.17 | 0.34 |
| Fixed Asset Turnover | 16.16 | 8.43 |
| Payout Ratio | 1.14% | 0% |
| Dividend Yield | 0.03% | 0% |
Interpretation of Financial Ratios
NVIDIA’s ratios indicate exceptional performance, particularly in ROE and ROIC, highlighting its profitability and effective use of capital. In contrast, CEVA displays concerning metrics, including negative returns and lack of dividends, which may signal operational challenges. CEVA’s high current and quick ratios suggest good liquidity, but the overall financial health raises caution for potential investors.
Dividend and Shareholder Returns
NVIDIA Corporation (NVDA) pays a nominal dividend of $0.034 per share with a low payout ratio of 1.14%, indicating a strong focus on reinvestment for growth. The company has also engaged in share buybacks, enhancing shareholder value. In contrast, CEVA, Inc. does not pay dividends, primarily due to ongoing losses and a strategy focused on reinvesting for growth and R&D. Both companies’ approaches reflect a commitment to long-term value creation, albeit through different mechanisms.
Strategic Positioning
NVIDIA Corporation (NVDA) commands a significant market share in the semiconductor industry, particularly with its advanced GPU technology, which powers gaming and AI applications. With a market cap of $4.30T, it faces competitive pressure from emerging technologies and other players like CEVA, Inc. (market cap of $519M), which specializes in wireless and smart sensing technologies. Both companies must navigate rapid technological disruptions while continuing to innovate and adapt to market demands.
Stock Comparison
In this section, I will analyze the weekly stock price movements and trading dynamics of NVIDIA Corporation (NVDA) and CEVA, Inc. (CEVA) over the past year, highlighting key price fluctuations that may impact investor decisions.
Trend Analysis
NVIDIA Corporation (NVDA) Over the past year, NVDA has experienced a significant price change of +260.49%, indicating a bullish trend overall. However, the recent trend from September 14, 2025, to November 30, 2025, shows a slight dip of -0.46%, suggesting a neutral trend in the short term. The stock reached a notable high of $202.49 and a low of $49.10 during this period, with a standard deviation of 34.99, reflecting considerable volatility. The acceleration status indicates deceleration in the overall price movement.
CEVA, Inc. (CEVA) CEVA has shown a price increase of +2.37% over the past year, maintaining a bullish trend as well. However, its recent performance from September 14, 2025, to November 30, 2025, reveals a decline of -8.56%, which is classified as a bearish trend in the short term. The stock’s highest price was $34.67, with a lowest price of $17.39, and a standard deviation of 4.47, indicating lower volatility compared to NVDA. The acceleration status for CEVA also shows deceleration in price growth.
As an investor, these insights can help you gauge the potential risks and rewards associated with each stock, guiding your investment strategy accordingly.
Analyst Opinions
Recent analyst recommendations indicate a cautious outlook for both NVIDIA (NVDA) and CEVA (CEVA). For NVIDIA, analysts have rated it a B+, suggesting a buy consensus due to strong metrics in return on equity and assets, with notable strengths in growth potential. Analysts like those from Morgan Stanley have highlighted NVDA’s leadership in AI technology. Conversely, CEVA holds a C+ rating, reflecting a hold consensus; analysts point to challenges in profitability metrics, advising caution. Overall, the consensus for NVIDIA is a buy, while CEVA is viewed more neutrally.
Stock Grades
In this section, I present the latest stock ratings for NVIDIA Corporation (NVDA) and CEVA, Inc. (CEVA) based on reliable assessments from well-known grading companies.
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 |
CEVA, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Barclays | maintain | Overweight | 2025-11-12 |
| Rosenblatt | maintain | Buy | 2025-11-11 |
| Rosenblatt | maintain | Buy | 2025-08-14 |
| Oppenheimer | maintain | Outperform | 2025-05-09 |
| Rosenblatt | maintain | Buy | 2025-05-08 |
| Barclays | maintain | Overweight | 2025-05-08 |
| Rosenblatt | maintain | Buy | 2025-04-23 |
| Rosenblatt | maintain | Buy | 2025-02-14 |
| Barclays | maintain | Overweight | 2025-02-14 |
| Rosenblatt | maintain | Buy | 2025-02-11 |
Overall, the trend for both companies shows a consistent positive outlook, particularly for NVIDIA, which maintains strong support from multiple analysts. CEVA also shows stability in its ratings, reflecting a solid position in the market.
Target Prices
The consensus target price for NVIDIA Corporation (NVDA) indicates a favorable outlook among analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| NVIDIA Corporation | 352 | 200 | 261.77 |
Analysts expect NVIDIA’s stock price to reach around 261.77, which suggests a significant upside potential compared to its current price of 176.51. However, caution is advised given the inherent volatility in tech stocks.
No verified target price data is available for CEVA, Inc. (CEVA), which reflects the current limited analyst coverage or market sentiment for this company.
Strengths and Weaknesses
The following table summarizes the strengths and weaknesses of NVIDIA Corporation (NVDA) and CEVA, Inc. (CEVA) based on recent data.
| Criterion | NVIDIA Corporation (NVDA) | CEVA, Inc. (CEVA) |
|---|---|---|
| Diversification | High, diverse product lines | Low, focused on specific technologies |
| Profitability | Strong margins (net profit margin: 55.8%) | Negative margins (net profit margin: -8.2%) |
| Innovation | Leader in AI and gaming tech | Emerging in wireless and AI technologies |
| Global presence | Strong international market | Limited global reach |
| Market Share | Significant in semiconductors | Niche player in DSP market |
| Debt level | Low debt (debt/equity ratio: 0.13) | Very low debt (debt/equity ratio: 0.02) |
Key takeaways indicate that NVIDIA excels in profitability, innovation, and market presence, making it a stronger candidate for investment. In contrast, CEVA’s niche focus and profitability challenges present greater risks for potential investors.
Risk Analysis
The following table outlines the key risks associated with NVIDIA Corporation and CEVA, Inc. in the current year.
| Metric | NVIDIA Corporation | CEVA, Inc. |
|---|---|---|
| Market Risk | High (Beta: 2.27) | Moderate (Beta: 1.45) |
| Regulatory Risk | Moderate | High |
| Operational Risk | Moderate | High |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | Moderate | High |
Both companies face significant market and operational risks, particularly in a volatile technology sector. NVIDIA’s high beta indicates greater sensitivity to market fluctuations, while CEVA struggles with operational challenges and regulatory scrutiny, impacting its performance.
Which one to choose?
In comparing NVIDIA Corporation (NVDA) and CEVA, Inc. (CEVA), the fundamental analysis highlights significant differences. NVDA exhibits strong metrics with a market cap of 2.91T, a gross profit margin of 75%, and a net income of 72.88B, reflecting robust profitability. Its B+ rating indicates favorable analyst sentiment, underpinned by a bullish stock trend, despite recent slight declines. Conversely, CEVA struggles with a market cap of 745M, negative operating income, and a C+ rating, showing challenges in profitability and operational efficiency.
Investors focused on growth may prefer NVIDIA for its solid fundamentals and growth prospects, while those prioritizing lower risk might find CEVA’s valuation appealing, albeit with caution given its financial performance.
However, both companies face industry risks, including competition and market dependence.
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 CEVA, Inc. to enhance your investment decisions:
