In the competitive landscape of the semiconductor industry, two titans stand out: NVIDIA Corporation (NVDA) and Texas Instruments Incorporated (TXN). Both companies are at the forefront of innovation, yet they pursue distinct strategies and target different segments within the market. This comparison will delve into their operational focuses, market presence, and growth trajectories to unravel which company presents the most compelling investment opportunity. Join me as we explore these giants and determine where your investment dollars might be best placed.
Table of contents
Company Overview
NVIDIA Corporation Overview
NVIDIA Corporation, headquartered in Santa Clara, California, is a leader in the semiconductor industry, specializing in graphics processing units (GPUs) and AI computing solutions. Founded in 1993, its mission is to harness the power of AI and graphics to enhance computing experiences across various sectors, including gaming, professional visualization, and data centers. NVIDIA’s diverse product offerings, such as GeForce GPUs for gaming and advanced AI computing platforms, position it at the forefront of technological innovation. With a market cap of approximately 4.30T and a strong focus on AI and deep learning applications, NVIDIA continues to expand its influence in the automotive and cloud computing markets.
Texas Instruments Incorporated Overview
Founded in 1930 and based in Dallas, Texas, Texas Instruments (TI) is a prominent player in the semiconductor industry, known for designing and manufacturing a wide range of analog and embedded processing products. TI’s mission is to create innovative solutions that enhance electronics across various applications, from industrial to automotive. With a market cap of around 153B, TI’s extensive portfolio includes power management products and microcontrollers, catering to diverse markets. Its commitment to quality and reliability has solidified its position as a trusted partner for electronics designers and manufacturers globally.
Key similarities and differences
Both NVIDIA and Texas Instruments operate within the semiconductor industry, focusing on technology-driven solutions. However, NVIDIA primarily emphasizes graphics processing and AI computing, while TI specializes in analog and embedded processing products. Their distinct market focuses and product offerings highlight the different avenues through which they contribute to technological advancement.
Income Statement Comparison
The table below compares the most recent Income Statements of NVIDIA Corporation and Texas Instruments Incorporated, providing a snapshot of their financial performance.
| Metric | NVIDIA Corporation | Texas Instruments Incorporated |
|---|---|---|
| Market Cap | 4.30T | 152.78B |
| Revenue | 130.50B | 15.64B |
| EBITDA | 86.14B | 7.54B |
| EBIT | 84.27B | 5.96B |
| Net Income | 72.88B | 4.80B |
| EPS | 2.97 | 5.24 |
| Fiscal Year | 2025 | 2024 |
Interpretation of Income Statement
NVIDIA has shown remarkable growth in Revenue and Net Income, soaring from 60.92B and 29.76B in 2024 to 130.50B and 72.88B in 2025, respectively. This indicates a strong upward trend with expanding profit margins. Texas Instruments, however, experienced a decline in Revenue from 17.52B in 2023 to 15.64B in 2024, with Net Income also decreasing from 6.51B to 4.80B. This suggests challenges in maintaining growth. Overall, NVIDIA’s robust performance contrasts with Texas Instruments’ recent struggles, highlighting the semiconductor industry’s varied dynamics.
Financial Ratios Comparison
The following table presents a comparative analysis of the most recent financial metrics for NVIDIA Corporation (NVDA) and Texas Instruments Incorporated (TXN). This includes key ratios that can help investors make informed decisions.
| Metric | [Company A: NVDA] | [Company B: TXN] |
|---|---|---|
| ROE | 91.87% | 28.39% |
| ROIC | 75.28% | 14.75% |
| P/E | 39.90 | 23.78 |
| P/B | 36.66 | 9.16 |
| Current Ratio | 4.44 | 4.55 |
| Quick Ratio | 3.88 | 3.35 |
| D/E | 0.13 | 0.80 |
| Debt-to-Assets | 9.20% | 38.29% |
| Interest Coverage | 329.77 | 10.76 |
| Asset Turnover | 1.17 | 0.54 |
| Fixed Asset Turnover | 16.16 | 1.38 |
| Payout Ratio | 1.14% | 70.00% |
| Dividend Yield | 0.03% | 2.94% |
Interpretation of Financial Ratios
NVIDIA demonstrates exceptionally strong performance in terms of profitability and efficiency, with a notably high ROE and ROIC. Its low debt levels and high-interest coverage indicate robust financial health. In contrast, Texas Instruments shows solid metrics but is more leveraged, with higher debt-to-assets and a lower ROE. The high payout ratio for TXN suggests a commitment to returning capital to shareholders, though it might limit growth opportunities. Investors should weigh these factors carefully based on their risk tolerance and investment goals.
Dividend and Shareholder Returns
NVIDIA (NVDA) maintains a modest dividend payout ratio of 1.14%, with a current yield of 0.03%. Although it engages in share buybacks, the limited dividend may indicate a focus on growth. Conversely, Texas Instruments (TXN) demonstrates a robust commitment to shareholder returns with a payout ratio near 99.92% and a yield of 2.80%, reflecting strong cash flow support. Both approaches signal varying strategies for long-term value creation, with TXN’s distributions appearing more sustainable.
Strategic Positioning
In the semiconductor industry, NVIDIA Corporation (NVDA) commands a significant market share, particularly in graphics processing units (GPUs) with a market cap of $4.30T. Its innovative AI and gaming solutions create robust competitive pressure. Conversely, Texas Instruments Incorporated (TXN) focuses on analog and embedded processing, maintaining a stable market share with a $153B market cap. Both companies face technological disruptions from emerging competitors, emphasizing the need for continuous innovation and adaptation in their respective niches.
Stock Comparison
Over the past year, NVIDIA Corporation (NVDA) and Texas Instruments Incorporated (TXN) have exhibited significant price movements and trading dynamics that warrant close examination.
Trend Analysis
NVIDIA Corporation (NVDA): Over the last year, NVDA has experienced a remarkable price increase of 260.49%, indicating a bullish trend. However, the trend shows signs of deceleration in the recent period, with a slight decrease of -0.46% from September 14, 2025, to November 30, 2025. The overall price range has fluctuated between a high of 202.49 and a low of 49.1. The standard deviation stands at 34.99, suggesting some volatility in its price movements.
Texas Instruments Incorporated (TXN): TXN’s stock has seen a 1.92% price increase over the past year, also reflecting a bullish trend. In the recent analysis period, however, the stock experienced a more pronounced decline of -7.85% from September 14, 2025, to November 30, 2025. The price range for TXN has been between a high of 221.25 and a low of 147.6. The standard deviation is 16.88, indicating lower volatility compared to NVDA.
In summary, while both stocks have demonstrated bullish trends over the past year, recent movements suggest that NVDA is experiencing a slight pullback, while TXN has faced a sharper decline, indicating a need for careful monitoring of their respective trajectories.
Analyst Opinions
Recent analyst recommendations for NVIDIA Corporation (NVDA) lean towards a cautious stance, with a rating of B+ reflecting strong return metrics but concerns over its price-to-earnings ratio. Analysts suggest a hold position, emphasizing potential volatility in the tech sector. Texas Instruments (TXN) received a solid B rating, where experts recommend holding due to stable returns on equity and assets, though they note a higher debt-to-equity ratio as a concern. Overall, the consensus for both companies is to hold, indicating a measured approach in the current market landscape.
Stock Grades
In the latest evaluations, both NVIDIA Corporation (NVDA) and Texas Instruments Incorporated (TXN) have maintained their stock ratings, with several analysts reaffirming their positions.
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 |
Texas Instruments Incorporated Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Susquehanna | maintain | Positive | 2025-10-22 |
| Wells Fargo | maintain | Equal Weight | 2025-10-22 |
| Truist Securities | maintain | Hold | 2025-10-22 |
| Rosenblatt | maintain | Buy | 2025-10-22 |
| Goldman Sachs | maintain | Buy | 2025-10-22 |
| JP Morgan | maintain | Overweight | 2025-10-22 |
| Cantor Fitzgerald | maintain | Neutral | 2025-10-22 |
| Stifel | maintain | Hold | 2025-10-22 |
| TD Cowen | maintain | Buy | 2025-10-22 |
| Mizuho | downgrade | Underperform | 2025-10-20 |
In summary, both NVDA and TXN show a consistent trend of strong support from analysts, with multiple “Buy” ratings for NVIDIA and a mix of “Positive” and “Buy” ratings for Texas Instruments. However, TXN did experience a downgrade from Mizuho, indicating some caution within that stock’s outlook.
Target Prices
The consensus target prices for NVIDIA Corporation (NVDA) and Texas Instruments Incorporated (TXN) indicate positive expectations from analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| NVIDIA Corporation (NVDA) | 352 | 200 | 261.77 |
| Texas Instruments Incorporated (TXN) | 245 | 145 | 190.45 |
For NVDA, the consensus target price of 261.77 is significantly above the current price of 176.51, suggesting strong bullish sentiment among analysts. Similarly, TXN’s consensus of 190.45 also reflects an optimistic outlook compared to its current price of 168.15.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of NVIDIA Corporation (NVDA) and Texas Instruments Incorporated (TXN) based on the most recent data:
| Criterion | NVIDIA (NVDA) | Texas Instruments (TXN) |
|---|---|---|
| Diversification | Limited to semiconductors | Broad portfolio across multiple segments |
| Profitability | High margins (net: 55.8%) | Strong margins (net: 30.7%) |
| Innovation | Leader in AI and gaming tech | Steady R&D in analog and embedded systems |
| Global presence | Strong international sales | Well-established global supply chain |
| Market Share | Significant in gaming and AI | Robust in analog and embedded markets |
| Debt level | Low debt-to-equity (0.13) | Moderate debt-to-equity (0.80) |
Key takeaways: NVIDIA excels in profitability and innovation within a niche market, while Texas Instruments boasts broader diversification and a steady presence in various segments, though it carries a higher debt level. Balance between growth potential and financial stability is crucial when considering investments.
Risk Analysis
In this section, I will outline the key risks associated with NVIDIA Corporation (NVDA) and Texas Instruments Incorporated (TXN) to help you make informed investment decisions.
| Metric | NVDA | TXN |
|---|---|---|
| Market Risk | High | Moderate |
| Regulatory Risk | Moderate | High |
| Operational Risk | Moderate | Moderate |
| Environmental Risk | Moderate | Low |
| Geopolitical Risk | High | Moderate |
Both companies face significant market and geopolitical risks, especially given the volatility in the semiconductor sector. NVIDIA’s high exposure to market fluctuations and regulatory scrutiny in international markets adds to its risk profile. In contrast, Texas Instruments has a more stable operational base but also faces regulatory challenges that could impact profitability.
Which one to choose?
In comparing NVIDIA Corporation (NVDA) and Texas Instruments Incorporated (TXN), several key metrics stand out. NVDA has a market cap of 2.91T and shows a robust growth trajectory with a 260.49% price change over the past year. Its profit margins are notably high, with a net profit margin of 55.8%, indicating strong operational efficiency. Analyst ratings suggest NVDA holds a B+ grade, reflecting sound fundamentals.
Conversely, TXN, with a market cap of 171B, displays a more conservative growth of 1.92% over the same period. Its net profit margin of 30.7% is solid but lower than NVDA’s. TXN’s rating is slightly lower at B, indicating a stable but less aggressive growth outlook.
For growth-oriented investors, NVDA appears favorable due to its strong performance and higher margins, while those prioritizing dividends and stability may lean toward TXN, which offers a consistent dividend yield of approximately 2.8%.
A specific risk to consider is NVDA’s high valuation relative to its earnings, which may be susceptible to market corrections.
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 Texas Instruments Incorporated to enhance your investment decisions:
