NVIDIA Corporation and Nova Ltd. are two prominent players in the semiconductor industry, each driving innovation in distinct yet overlapping segments. NVIDIA leads with cutting-edge graphics and AI computing solutions, while Nova specializes in precision process control systems for semiconductor manufacturing. Comparing these companies offers valuable insights into different growth strategies and market potentials. In this article, I will help you determine which stock holds the most promise for your investment portfolio.
Table of contents
Companies Overview
I will begin the comparison between NVIDIA Corporation and Nova Ltd. by providing an overview of these two companies and their main differences.
NVIDIA Corporation Overview
NVIDIA Corporation is a leading provider of graphics, compute, and networking solutions globally, with a strong presence in gaming, professional visualization, data center, and automotive markets. Headquartered in Santa Clara, California, it offers a diverse product range including GeForce GPUs, AI platforms, and autonomous vehicle technologies. Founded in 1993, NVIDIA serves a broad customer base including OEMs, system builders, and cloud service providers.
Nova Ltd. Overview
Nova Ltd., based in Rehovot, Israel, develops and sells process control systems for semiconductor manufacturing, focusing on metrology platforms for dimensional and chemical measurements. Incorporated in 1993, the company supports integrated circuit sectors such as logic, foundries, and memory manufacturers. Nova caters primarily to semiconductor fabrication, providing critical process control solutions internationally.
Key similarities and differences
Both NVIDIA and Nova operate in the semiconductors sector and serve global markets with advanced technology solutions. NVIDIA’s business spans a wider array of applications including gaming and AI, while Nova specializes in metrology and process control for semiconductor manufacturing. NVIDIA’s workforce and market cap are significantly larger, reflecting its broader product portfolio and market reach compared to Nova’s focused niche in semiconductor process equipment.
Income Statement Comparison
The following table presents a side-by-side comparison of key income statement metrics for NVIDIA Corporation and Nova Ltd. based on their most recent fiscal year data.
| Metric | NVIDIA Corporation | Nova Ltd. |
|---|---|---|
| Market Cap | 4.46T | 12.19B |
| Revenue | 130.5B | 672.4M |
| EBITDA | 86.1B | 204.9M |
| EBIT | 84.3B | 187.5M |
| Net Income | 72.9B | 184.9M |
| EPS | 2.97 | 6.31 |
| Fiscal Year | 2025 | 2024 |
Income Statement Interpretations
NVIDIA Corporation
NVIDIA’s revenue surged dramatically from $16.7B in 2021 to $130.5B in 2025, with net income expanding from $4.3B to $72.9B. Margins improved strongly, with a gross margin near 75% and a net margin of 55.85% in 2025. The latest year showed exceptional growth rates, including a 114.2% revenue increase and significant margin expansion, signaling robust operational leverage.
Nova Ltd.
Nova’s revenue increased steadily from $269M in 2020 to $672M in 2024, while net income rose from $48M to $184.9M during the same period. Margins remained stable and favorable, with a gross margin of 57.57% and net margin of 27.33% in 2024. The recent year saw solid growth in revenue (29.83%) and earnings per share (34.35%), though net margin growth was only neutral, indicating moderate profitability improvement.
Which one has the stronger fundamentals?
NVIDIA exhibits stronger fundamentals with significantly higher revenue and net income growth, superior margins, and excellent profitability expansion across the period. Nova shows consistent growth and stable margins but at a smaller scale and more moderate improvements. Both companies have favorable income statement evaluations, yet NVIDIA’s scale and margin gains position it with more robust financial fundamentals.
Financial Ratios Comparison
The following table provides a side-by-side comparison of key financial ratios for NVIDIA Corporation and Nova Ltd. based on their most recent fiscal year data.
| Ratios | NVIDIA Corporation (NVDA) | Nova Ltd. (NVMI) |
|---|---|---|
| ROE | 91.87% | 19.81% |
| ROIC | 75.28% | 13.39% |
| P/E | 39.90 | 31.20 |
| P/B | 36.66 | 6.18 |
| Current Ratio | 4.44 | 2.32 |
| Quick Ratio | 3.88 | 1.92 |
| D/E (Debt-to-Equity) | 0.13 | 0.25 |
| Debt-to-Assets | 9.20% | 16.98% |
| Interest Coverage | 329.77 | 116.20 |
| Asset Turnover | 1.17 | 0.48 |
| Fixed Asset Turnover | 16.16 | 5.06 |
| Payout ratio | 1.14% | 0% |
| Dividend yield | 0.03% | 0% |
Interpretation of the Ratios
NVIDIA Corporation
NVIDIA shows strong profitability with a net margin of 55.85% and an exceptional return on equity of 91.87%, indicating efficient management and high earnings generation. However, valuation ratios such as PE at 39.9 and PB at 36.66 are high, suggesting elevated market expectations. The company pays a very modest dividend with a 0.03% yield, reflecting a cautious payout policy supported by solid free cash flow and minimal risk of unsustainable distributions.
Nova Ltd.
Nova Ltd. presents favorable profitability ratios, including a net margin of 27.33% and a return on equity of 19.81%, though these are notably lower than NVIDIA’s. The company’s valuation ratios, such as a PE of 31.2 and PB of 6.18, are lower but still high, reflecting growth potential. Nova does not pay dividends, likely prioritizing reinvestment in R&D and growth, consistent with its industry position and financial profile.
Which one has the best ratios?
Both companies have a similar proportion of favorable ratios at 64.29%, but NVIDIA’s superior profitability and efficiency metrics contrast with its higher valuation and weaker liquidity ratios. Nova offers a more balanced liquidity position and moderate returns, though with a less impressive asset turnover. The choice depends on weighing high profitability and valuation against steadier financial stability.
Strategic Positioning
This section compares the strategic positioning of NVIDIA and Nova Ltd., including market position, key segments, and exposure to technological disruption:
NVIDIA Corporation
- Leading semiconductor firm with strong global presence; high beta indicating market volatility.
- Diverse segments: Data Center, Gaming, Automotive, and Professional Visualization drive growth.
- Active in AI, HPC, autonomous vehicles, and cloud computing; exposed to rapid tech innovation.
Nova Ltd.
- Smaller semiconductor company focused on process control systems; moderate beta suggests less volatility.
- Concentrated product portfolio in semiconductor metrology for IC manufacturing process control.
- Focused on semiconductor manufacturing processes, likely less exposed to broad tech disruption.
NVIDIA Corporation vs Nova Ltd. Positioning
NVIDIA pursues a diversified approach across multiple high-growth semiconductor segments, offering broad market exposure but higher volatility. Nova Ltd. focuses narrowly on process control metrology, which limits scale but may reduce competitive pressure and volatility.
Which has the best competitive advantage?
NVIDIA shows a very favorable moat with strong and growing ROIC well above WACC, indicating durable competitive advantage and value creation. Nova Ltd. has only a slightly favorable moat with ROIC near WACC, suggesting limited competitive advantage but improving profitability.
Stock Comparison
The stock price movements of NVIDIA Corporation and Nova Ltd. over the past year reveal significant bullish gains, with notable shifts in momentum and trading volumes influencing recent trends.
Trend Analysis
NVIDIA Corporation’s stock showed a strong bullish trend with a 132.35% increase over the past 12 months, although the trend has decelerated. Prices ranged from 76.2 to 202.49, with recent weeks showing a slight bearish correction of -9.56%.
Nova Ltd. experienced a more accelerated bullish trend, rising 155.25% over the same period. Its price fluctuated between 159.92 and 413.04, with recent performance gaining 19.85%, indicating growing momentum.
Comparing both stocks, Nova Ltd. has delivered the highest market performance with a larger percentage increase and ongoing acceleration, outperforming NVIDIA’s more moderate recent trend.
Target Prices
The current analyst consensus reveals a bullish outlook for both NVIDIA Corporation and Nova Ltd.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| NVIDIA Corporation | 352 | 140 | 264.34 |
| Nova Ltd. | 390 | 335 | 362.5 |
Analysts expect NVIDIA’s stock to rise significantly from its current price of 183.14 USD, while Nova Ltd.’s consensus target is slightly below its current price of 413.04 USD, suggesting a more cautious stance.
Analyst Opinions Comparison
This section compares the analysts’ ratings and grades for NVIDIA Corporation and Nova Ltd.:
Rating Comparison
NVDA Rating
- Rating: B+ indicating a very favorable status.
- Discounted Cash Flow Score: 3, reflecting a moderate valuation assessment.
- ROE Score: 5, showing very favorable profitability from shareholders’ equity.
- ROA Score: 5, indicating very favorable asset utilization.
- Debt To Equity Score: 3, representing moderate financial risk.
- Overall Score: 3, assessed as moderate overall financial standing.
NVMI Rating
- Rating: B- indicating a very favorable status.
- Discounted Cash Flow Score: 3, reflecting a moderate valuation assessment.
- ROE Score: 4, showing favorable profitability from shareholders’ equity.
- ROA Score: 5, indicating very favorable asset utilization.
- Debt To Equity Score: 1, indicating very unfavorable financial risk.
- Overall Score: 3, assessed as moderate overall financial standing.
Which one is the best rated?
Based strictly on the data, NVDA holds a higher rating (B+) compared to NVMI’s B-. NVDA also scores better in return on equity and debt to equity metrics, suggesting a stronger overall financial profile.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for NVIDIA Corporation and Nova Ltd.:
NVIDIA Corporation Scores
- Altman Z-Score: 68.04, indicating safe zone and very low bankruptcy risk.
- Piotroski Score: 6, classified as average financial strength.
Nova Ltd. Scores
- Altman Z-Score: 7.76, indicating safe zone and low bankruptcy risk.
- Piotroski Score: 7, classified as strong financial strength.
Which company has the best scores?
Based strictly on the provided data, NVIDIA has a much higher Altman Z-Score indicating greater bankruptcy safety, while Nova Ltd. has a slightly better Piotroski Score reflecting stronger financial health. Each excels in different metrics.
Grades Comparison
I present below a comparison of the latest reliable grades from recognized grading companies for NVIDIA Corporation and Nova Ltd.:
NVIDIA Corporation Grades
The following table summarizes recent grades assigned to NVIDIA Corporation by reputable grading firms:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Mizuho | Maintain | Outperform | 2026-01-09 |
| Truist Securities | Maintain | Buy | 2025-12-29 |
| Stifel | Maintain | Buy | 2025-12-29 |
| B of A Securities | Maintain | Buy | 2025-12-26 |
| Baird | Maintain | Outperform | 2025-12-26 |
| Bernstein | Maintain | Outperform | 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 |
| Deutsche Bank | Maintain | Hold | 2025-11-20 |
NVIDIA’s grades predominantly indicate a strong buy or outperform stance, with most firms maintaining positive outlooks.
Nova Ltd. Grades
The following table presents Nova Ltd.’s recent grades from established grading companies:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| B of A Securities | Maintain | Buy | 2026-01-13 |
| Jefferies | Maintain | Buy | 2025-12-15 |
| Evercore ISI Group | Maintain | Outperform | 2025-11-07 |
| Benchmark | Maintain | Buy | 2025-11-07 |
| Cantor Fitzgerald | Maintain | Overweight | 2025-06-24 |
| B of A Securities | Maintain | Buy | 2025-06-24 |
| Benchmark | Maintain | Buy | 2025-05-09 |
| Citigroup | Maintain | Buy | 2025-05-09 |
| B of A Securities | Maintain | Buy | 2025-04-16 |
| Cantor Fitzgerald | Maintain | Overweight | 2025-03-14 |
Nova Ltd. consistently receives Buy or Outperform ratings, reflecting a generally favorable consensus.
Which company has the best grades?
NVIDIA Corporation has a larger volume of ratings with a notable presence of Strong Buy and Outperform grades, whereas Nova Ltd. maintains a solid Buy and Outperform consensus but lacks Strong Buy ratings. Investors may interpret NVIDIA’s broader positive analyst coverage as a signal of stronger confidence among grading firms.
Strengths and Weaknesses
Below is a comparison table highlighting the key strengths and weaknesses of NVIDIA Corporation and Nova Ltd. based on the most recent data.
| Criterion | NVIDIA Corporation (NVDA) | Nova Ltd. (NVMI) |
|---|---|---|
| Diversification | Highly diversified revenue streams: Data Center (115B), Gaming (11.35B), Automotive (1.69B) | Single product line with 538M revenue in 2024 |
| Profitability | Exceptional profitability with 55.85% net margin and 91.87% ROE | Good profitability with 27.33% net margin and 19.81% ROE |
| Innovation | Very strong innovation indicated by rapidly growing ROIC (+339%) and durable competitive moat | Moderate innovation with growing ROIC (+70%) but only slightly favorable moat |
| Global presence | Significant global footprint especially in data centers and gaming markets | Smaller scale with limited diversification and presence |
| Market Share | Leading market share in GPUs and data center technologies | Niche market player with limited share |
NVIDIA stands out with a broad and diversified portfolio, exceptional profitability, and a durable competitive advantage driven by innovation. Nova Ltd. shows improving profitability and innovation but remains less diversified and occupies a smaller market niche. Investors should weigh NVIDIA’s premium valuation against its strong growth and moat, while Nova might offer growth potential with higher risk due to narrower focus.
Risk Analysis
Below is a comparative risk table for NVIDIA Corporation (NVDA) and Nova Ltd. (NVMI) based on the most recent data from 2025 and 2024 respectively:
| Metric | NVIDIA Corporation (NVDA) | Nova Ltd. (NVMI) |
|---|---|---|
| Market Risk | High beta at 2.314 indicates significant volatility. | Beta at 1.832 shows moderate volatility. |
| Debt level | Low debt-to-equity ratio of 0.13; favorable leverage. | Higher debt-to-equity at 0.25; moderate leverage risk. |
| Regulatory Risk | US-based with exposure to stringent tech regulations and export controls. | Israel-based, subject to international trade and tech regulations. |
| Operational Risk | Large scale with 36K employees; complexity may increase risk. | Smaller scale with 1.2K employees; less operational complexity. |
| Environmental Risk | Tech manufacturing impact limited but increasing focus on sustainability. | Similar industry exposure; smaller footprint but growing environmental scrutiny. |
| Geopolitical Risk | Significant exposure to US-China tensions affecting supply chains. | Exposure to Middle East geopolitical instability and global supply chain risks. |
In synthesis, NVIDIA’s highest risks are market volatility and geopolitical tensions, especially US-China relations impacting supply chains. Despite low debt, valuation multiples are high, adding market risk. Nova Ltd. faces moderate market and geopolitical risks, with higher debt levels but a strong financial footing. Both companies score safely on bankruptcy risk metrics, but investors should monitor global trade and regulatory environments closely.
Which Stock to Choose?
NVIDIA Corporation (NVDA) shows a strong income evolution with a 682.6% revenue growth over 2021-2025 and highly favorable profitability metrics, including a 55.85% net margin and 91.87% ROE. Its debt levels are low, reflected in a net debt to EBITDA of 0.02 and a solid interest coverage ratio, supporting its very favorable B+ rating. The company demonstrates a very favorable moat with ROIC well above WACC, indicating durable competitive advantage and efficient capital use.
Nova Ltd. (NVMI) exhibits steady income growth of 149.6% over 2020-2024 with a 27.33% net margin and moderate profitability ratios like 19.81% ROE. It carries a higher relative debt burden with a net debt to EBITDA of 0.38 but maintains a favorable interest coverage. NVMI holds a very favorable B- rating and a slightly favorable moat status, reflecting improving profitability though not yet a confirmed competitive advantage.
Investors with a risk-tolerant, growth-oriented profile might find NVDA’s strong income growth, exceptional profitability, and durable moat appealing, despite higher valuation multiples. Conversely, those prioritizing steady improvement and moderate risk could view NVMI’s favorable financial ratios and accelerating stock trend as indicative of potential value creation, though with less pronounced competitive strength.
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 Nova Ltd. to enhance your investment decisions:
