NVIDIA Corporation and CEVA, Inc. are two key players in the semiconductor industry, each carving out a unique space through innovation and technology licensing. NVIDIA excels in high-performance graphics and AI computing, while CEVA focuses on licensing wireless connectivity and smart sensing technologies. Their overlapping markets and distinct strategies make this comparison essential. Join me as we explore which company offers the most compelling investment opportunity in 2026.
Table of contents
Companies Overview
I will begin the comparison between NVIDIA and CEVA by providing an overview of these two companies and their main differences.
NVIDIA Overview
NVIDIA Corporation is a global leader in graphics, compute, and networking solutions, serving markets such as gaming, professional visualization, data centers, and automotive. With a market cap of approximately 4.6T USD, NVIDIA offers GeForce GPUs, AI platforms, and autonomous vehicle technologies. Founded in 1993 and headquartered in Santa Clara, California, it employs around 36,000 people and operates across multiple international regions.
CEVA Overview
CEVA, Inc. focuses on licensing wireless connectivity and smart sensing technologies, including digital signal processors and AI processors, to semiconductor and OEM companies worldwide. With a market cap near 540M USD, CEVA’s products support 5G, IoT, imaging, voice, and sensor fusion applications. Founded in 1999 and based in Rockville, Maryland, it has a workforce of about 406 employees and targets various sectors like mobile, automotive, and industrial markets.
Key similarities and differences
Both companies operate in the semiconductor industry and provide advanced technology solutions involving AI and connectivity. However, NVIDIA primarily develops and sells hardware and software products directly to end markets, while CEVA operates as a licensor of intellectual property to other manufacturers. NVIDIA’s scale and market presence far exceed CEVA’s, reflecting differing business models and market focuses.
Income Statement Comparison
The following table compares key income statement metrics for NVIDIA Corporation and CEVA, Inc. for their most recent fiscal years.
| Metric | NVIDIA Corporation | CEVA, Inc. |
|---|---|---|
| Market Cap | 4.6T | 538M |
| Revenue | 130.5B | 107M |
| EBITDA | 86.1B | -3.4M |
| EBIT | 84.3B | -7.5M |
| Net Income | 72.9B | -8.8M |
| EPS | 2.97 | -0.37 |
| Fiscal Year | 2025 | 2024 |
Income Statement Interpretations
NVIDIA Corporation
NVIDIA’s revenue grew substantially from $16.7B in 2021 to $130.5B in 2025, with net income surging from $4.3B to $72.9B. Margins improved significantly, with a gross margin near 75% and net margin at 55.85% in the latest year. The 2025 fiscal year showed exceptional growth, with revenue more than doubling and profitability strengthening across the board.
CEVA, Inc.
CEVA’s revenue increased moderately from $100M in 2020 to $107M in 2024, while net income remained negative, though losses narrowed from -$23.2M in 2022 to -$8.8M in 2024. Gross margins stayed favorable at 88%, but EBIT and net margins remained unfavorable. The latest year showed some improvement in profitability metrics and margin growth, though the company still operates at a loss.
Which one has the stronger fundamentals?
NVIDIA demonstrates robust fundamentals with strong revenue and net income growth, high and improving margins, and consistently favorable income statement evaluations. CEVA, despite improving revenue and some margin stability, continues to experience net losses and unfavorable EBIT and net margins. Overall, NVIDIA’s income statement reflects stronger and more stable financial health over the periods analyzed.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for NVIDIA Corporation and CEVA, Inc. based on their most recent fiscal year data.
| Ratios | NVIDIA Corporation (2025) | CEVA, Inc. (2024) |
|---|---|---|
| ROE | 91.87% | -3.30% |
| ROIC | 75.28% | -8.56% |
| P/E | 39.90 | -84.79 |
| 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 | 9.20% | 1.79% |
| Interest Coverage | 330.0 | 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 the Ratios
NVIDIA Corporation
NVIDIA exhibits predominantly strong financial ratios, with favorable returns on equity (91.87%) and invested capital (75.28%), and robust asset turnover. However, some ratios like price-to-earnings (39.9) and price-to-book (36.66) appear stretched, potentially signaling overvaluation risks. The company pays a modest dividend, with a low yield of 0.03%, reflecting a cautious payout supported by substantial free cash flow.
CEVA, Inc.
CEVA’s financial ratios indicate challenges, including negative net margin (-8.22%) and return on equity (-3.3%), reflecting unprofitable operations. While the company maintains low debt and a strong quick ratio (7.09), its zero dividend yield aligns with its unprofitable status and reinvestment needs. The firm prioritizes R&D, explaining the absence of shareholder distributions and modest asset turnover.
Which one has the best ratios?
Based on the evaluations, NVIDIA holds a clear advantage with a majority of favorable financial ratios, strong profitability, and efficient capital use. Conversely, CEVA faces notable profitability and coverage concerns, resulting in an overall unfavorable ratio profile despite some liquidity strengths. Thus, NVIDIA’s ratios are generally more robust and stable.
Strategic Positioning
This section compares the strategic positioning of NVIDIA Corporation and CEVA, Inc., focusing on market position, key segments, and exposure to technological disruption:
NVIDIA Corporation
- Leading semiconductor company with strong global presence, facing intense competition in GPUs and AI
- Diverse segments: Data Center, Gaming, Automotive, Professional Visualization, OEM and Other
- Invests heavily in AI, HPC, and autonomous driving platforms; innovative in virtual worlds and cloud
CEVA, Inc.
- Smaller licensor in wireless connectivity and smart sensing technologies, competing in niche markets
- Focused on licensing DSP cores and AI processors for connectivity and smart sensing in multiple sectors
- Licenses advanced wireless and sensing IP but faces disruption risk from rapid wireless tech evolution
NVIDIA Corporation vs CEVA, Inc. Positioning
NVIDIA pursues a diversified strategy across multiple high-growth segments, leveraging AI and data center dominance, while CEVA concentrates on licensing specialized wireless and sensing IP, limiting scale but focusing on niche technologies.
Which has the best competitive advantage?
NVIDIA demonstrates a very favorable economic moat with growing ROIC and value creation, indicating a durable competitive advantage. CEVA shows a very unfavorable moat with declining ROIC and value destruction, suggesting weaker competitive strength.
Stock Comparison
The stock prices of NVIDIA Corporation and CEVA, Inc. over the past 12 months reveal significant divergence, with NVIDIA showing strong gains despite decelerating momentum, while CEVA posted modest overall growth amid recent declines.
Trend Analysis
NVIDIA Corporation’s stock rose 161.82% over the past year, indicating a bullish trend with decelerating acceleration. The price ranged from a low of 72.13 to a high of 202.49, showing high volatility (std deviation 32.99).
CEVA, Inc. experienced a 3.6% increase over the same period, also bullish but with deceleration. Its price fluctuated between 17.39 and 34.67, with lower volatility (std deviation 4.4). However, recent months show a -15.84% decline.
Comparing both, NVIDIA substantially outperformed CEVA, delivering the highest market performance over the analyzed 12-month period.
Target Prices
Analysts provide a clear target price consensus for NVIDIA Corporation and CEVA, Inc., reflecting varied expectations.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| NVIDIA Corporation | 352 | 140 | 262.79 |
| CEVA, Inc. | 28 | 28 | 28 |
The consensus target for NVIDIA at 262.79 is significantly above its current price of 188.85, indicating bullish analyst sentiment. CEVA’s target price of 28 also suggests upside potential from its current 22.42 price level.
Analyst Opinions Comparison
This section compares analysts’ ratings and financial scores for NVIDIA Corporation and CEVA, Inc.:
Rating Comparison
NVIDIA Rating
- Rating: B+ indicating a very favorable overall assessment.
- Discounted Cash Flow Score: Moderate score of 3 reflecting balanced valuation.
- ROE Score: Very favorable score of 5 showing high efficiency in equity use.
- ROA Score: Very favorable score of 5 showing strong asset utilization.
- Debt To Equity Score: Moderate score of 3 reflecting moderate financial risk.
- Overall Score: Moderate score of 3 summarizing financial standing.
CEVA Rating
- Rating: C+ indicating a very favorable overall assessment.
- Discounted Cash Flow Score: Moderate score of 3 reflecting balanced valuation.
- ROE Score: Very unfavorable score of 1 indicating low efficiency in equity use.
- ROA Score: Very unfavorable score of 1 indicating weak asset utilization.
- Debt To Equity Score: Favorable score of 4 indicating lower financial risk.
- Overall Score: Moderate score of 2 summarizing financial standing.
Which one is the best rated?
NVIDIA holds a higher rating (B+) and stronger scores in ROE and ROA, indicating better profitability and asset use. CEVA has a lower rating (C+) but a more favorable debt to equity score, reflecting less financial risk. Overall, NVIDIA is better rated based strictly on the provided data.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for NVIDIA Corporation and CEVA, Inc.:
NVIDIA Corporation Scores
- Altman Z-Score: 69.52, indicating a safe financial zone with very low bankruptcy risk.
- Piotroski Score: 5, reflecting average financial strength and investment quality.
CEVA, Inc. Scores
- Altman Z-Score: 11.52, also in the safe zone showing low bankruptcy risk.
- Piotroski Score: 4, indicating average financial health and investment potential.
Which company has the best scores?
NVIDIA has a significantly higher Altman Z-Score, indicating stronger financial stability, while both companies show average Piotroski Scores. Based strictly on these scores, NVIDIA demonstrates better financial safety.
Grades Comparison
Here is a detailed comparison of the latest grades assigned to NVIDIA Corporation and CEVA, Inc.:
NVIDIA Corporation Grades
The following table summarizes recent grades assigned to NVIDIA Corporation by leading financial institutions:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Stifel | Maintain | Buy | 2025-12-29 |
| Truist Securities | Maintain | Buy | 2025-12-29 |
| Bernstein | Maintain | Outperform | 2025-12-26 |
| Baird | Maintain | Outperform | 2025-12-26 |
| B of A Securities | Maintain | Buy | 2025-12-26 |
| Truist Securities | Maintain | Buy | 2025-12-19 |
| Tigress Financial | Maintain | Strong Buy | 2025-12-18 |
| Morgan Stanley | Maintain | Overweight | 2025-12-01 |
| Baird | Maintain | Outperform | 2025-11-20 |
| Truist Securities | Maintain | Buy | 2025-11-20 |
NVIDIA’s grades consistently indicate strong buy-side sentiment, with multiple “Buy,” “Outperform,” and “Strong Buy” ratings maintained throughout late 2025.
CEVA, Inc. Grades
The following table summarizes recent grades assigned to CEVA, Inc. by major financial analysts:
| 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 |
| Barclays | Maintain | Overweight | 2025-02-14 |
| Rosenblatt | Maintain | Buy | 2025-02-14 |
| Rosenblatt | Maintain | Buy | 2025-02-11 |
CEVA’s grades show a consistent pattern of “Buy,” “Overweight,” and “Outperform” ratings, pointing to positive analyst views maintained over the year.
Which company has the best grades?
Both NVIDIA Corporation and CEVA, Inc. have received consistently positive grades, with NVIDIA showing a slightly stronger emphasis on “Strong Buy” and “Outperform” ratings. This suggests investors might perceive NVIDIA as having a more robust growth outlook, while CEVA maintains solid buy-side support. The difference in grades may influence portfolio allocations depending on risk tolerance and investment goals.
Strengths and Weaknesses
Below is a comparative table of strengths and weaknesses for NVIDIA Corporation and CEVA, Inc., based on their most recent financial and market data.
| Criterion | NVIDIA Corporation (NVDA) | CEVA, Inc. |
|---|---|---|
| Diversification | Highly diversified with strong segments in Data Center ($115B), Gaming ($11.35B), Automotive ($1.69B), and Professional Visualization ($1.88B) | Limited diversification, mainly focused on Licensing ($60M) and Royalty ($47M) revenues |
| Profitability | Very high profitability: net margin 55.85%, ROIC 75.28%, ROE 91.87% | Negative profitability: net margin -8.22%, ROIC -8.56%, ROE -3.3% |
| Innovation | Strong innovation pipeline with durable competitive advantage reflected in a very favorable moat and rapidly growing ROIC (+339%) | Innovation challenges with declining ROIC (-3485%), indicating value destruction |
| Global presence | Significant global footprint supported by leading technology in AI, gaming, and automotive markets | Smaller global presence, niche IP licensing business |
| Market Share | Market leader in GPUs and AI accelerators, commanding dominant share in data center and gaming markets | Smaller market share in semiconductor IP licensing, with limited scale |
Key takeaways: NVIDIA demonstrates robust diversification, exceptional profitability, and a durable competitive advantage, making it a strong candidate for investors. In contrast, CEVA faces profitability and innovation challenges, reflecting a riskier investment profile.
Risk Analysis
Below is a comparative table presenting key risks for NVIDIA Corporation and CEVA, Inc. based on the most recent available data:
| Metric | NVIDIA Corporation (NVDA) | CEVA, Inc. (CEVA) |
|---|---|---|
| Market Risk | High beta 2.28, tech sector volatility | Moderate beta 1.47, niche semiconductor licensing |
| Debt level | Low debt/equity 0.13, strong interest coverage (341x) | Very low debt/equity 0.02, no interest coverage concerns |
| Regulatory Risk | Moderate, global operations with exposure to US-China trade tensions | Moderate, licensing business subject to IP regulations |
| Operational Risk | Diversified product lines, supply chain complexity | Smaller scale, dependency on licensees for revenue |
| Environmental Risk | Moderate, semiconductor manufacturing impact | Low, primarily IP licensing with limited direct environmental footprint |
| Geopolitical Risk | High, includes exposure to Taiwan and China markets | Moderate, US-based with global customers |
Synthesizing these risks, NVIDIA’s most significant concerns lie in market volatility and geopolitical exposure, especially considering its operations in sensitive regions like Taiwan. CEVA’s risks are more operational and regulatory, tied to its smaller scale and reliance on licensing partners. Both companies have low debt levels, mitigating financial risk. Investors should weigh NVIDIA’s geopolitical risks against its strong financial health, while CEVA presents higher profitability risks but lower direct geopolitical exposure.
Which Stock to Choose?
NVIDIA Corporation (NVDA) shows a strong income evolution with significant revenue and net income growth over 2021-2025. Its financial ratios are mostly favorable, highlighted by high ROE (91.87%) and ROIC (75.28%), low debt, and a very favorable global rating (B+). The company demonstrates very favorable profitability and a very favorable moat with growing ROIC well above WACC.
CEVA, Inc. (CEVA) exhibits modest revenue growth but negative net income evolution over 2020-2024, with unfavorable profitability metrics such as negative ROE (-3.3%) and ROIC (-8.56%). Its financial ratios are mixed, with a higher proportion of unfavorable ratios and a moderate overall rating (C+). The company’s moat evaluation is very unfavorable, indicating value destruction and declining profitability.
Investors focused on growth and quality might find NVDA’s robust income growth, strong profitability, and durable competitive advantage appealing, while those with a higher risk tolerance or seeking potential turnaround opportunities could see CEVA’s situation differently, given its improving revenue but ongoing challenges in profitability and value creation.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of NVIDIA Corporation and CEVA, Inc. to enhance your investment decisions:
