Nvidia Vs Intel: Which is the Better Semiconductor Stock?

Take a look at this comparative analysis between Nvidia and Intel before investing

For investors in semiconductor companies, there is a series of events unfolding that they may pay attention to. Nvidia and Intel, two of the largest companies of high-performance silicon, are in competition. However, shares of both Nvidia and Intel have slipped in 2022. 

The current stock price of Nvidia is US$215.04. From the previous close, the stock price has come down by 1.88%. The company's products are used in gaming, professional visualization, data center, and automotive markets. NVIDIA Corporation sells its products to original equipment manufacturers, original device manufacturers, system builders, add-in board manufacturers, retailers/distributors, independent software vendors, Internet, and cloud service providers, automotive manufacturers, tier-1 automotive suppliers, mapping companies, start-ups, and other ecosystem participants.

Intel's market stock price is currently US$46.50, 0.15% down from the previous close. The company provides high-performance computing solutions for targeted verticals and embedded applications for retail, industrial, and healthcare markets; and solutions for assisted and autonomous driving comprising compute platforms, computer vision and machine learning-based sensing, mapping and localization, driving policy, and active sensors. In addition, it offers workload-optimized platforms and related products for cloud service providers, enterprise and government, and communications service providers. 

Nvidia is on track to expand its influence in the data center – which is (also) Intel's core market and strategy. From Nvidia's comments, it seems it will further pursue and double down on this. Nvidia may become an Arm CPU vendor in the data center. Intel, meanwhile, is finally close to launching its first GPU as part of its heterogeneous strategy: developing all kinds of silicon, not just only a CPU or only a GPU. 

Both Nvidia and Intel have high margins, especially in the data center, but that also creates opportunities for both to be (more than) competitive on pricing besides just competing on performance. Nvidia is already growing at an impressive pace, Intel, on the other hand, is way cheaper, pays a nice dividend, and is on track to regain its mojo.