Comparison of AMD, Intel, and NVIDIA Full Year 2023 Earnings

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Compare AMD, Intel, and NVIDIA's full year 2023 earnings

Let's break down the financial data for AMD, Intel, and NVIDIA for the full year 2023. We'll look at key metrics such as revenue, income, cash flow, profitability, debt, and other important factors to provide a comprehensive comparison.

AMD (Advanced Micro Devices)

1. Revenue and Income:

   • Revenue: $22.68 billion
   • Gross Profit: $10.46 billion
   • Net Income: $854 million

2. Cash Flow:

   • Operating Cash Flow: Calculated as Net Income + Depreciation & Amortization + Change in Working Capital = $854 million + $1.87 billion - $3.049 billion = -$325 million
   • Free Cash Flow: $1.12 billion

3. Profitability:

   • Gross Profit Margin: 46.12%
   • Operating Margin: 1.76%
   • Net Profit Margin: 3.77%
   • Return on Equity: 1.53%

4. Debt and Solvency:

   • Total Debt: $3.01 billion
   • Liabilities to Equity Ratio: 0.21
   • Current Ratio: 2.51

5. Market Metrics:

   • Market Cap: $270.95 billion
   • Price to Earnings Ratio (TTM): 325.95
   • Price to Sales Ratio (TTM): 12.27

Intel (INTC)

1. Revenue and Income:

   • Revenue: $54.23 billion
   • Gross Profit: $21.71 billion
   • Net Income: $1.689 billion

2. Cash Flow:

   • Operating Cash Flow: Calculated as Net Income + Depreciation & Amortization + Change in Working Capital = $1.689 billion + $9.602 billion - $2.569 billion = $8.722 billion
   • Free Cash Flow: -$14.24 billion

3. Profitability:

   • Gross Profit Margin: 40.04%
   • Operating Margin: 0.06%
   • Net Profit Margin: 3.12%
   • Return on Equity: 1.54%

4. Debt and Solvency:

   • Total Debt: $49.27 billion
   • Liabilities to Equity Ratio: 0.74
   • Current Ratio: 1.54

5. Market Metrics:

   • Market Cap: $184.55 billion
   • Price to Earnings Ratio (TTM): 107.71
   • Price to Sales Ratio (TTM): 3.35

NVIDIA (NVDA)

1. Revenue and Income:

   • Revenue: $60.92 billion
   • Gross Profit: $44.30 billion
   • Net Income: $29.76 billion

2. Cash Flow:

   • Operating Cash Flow: Calculated as Net Income + Depreciation & Amortization + Change in Working Capital = $29.76 billion + $1.508 billion - $3.722 billion = $27.546 billion
   • Free Cash Flow: $33.67 billion

3. Profitability:

   • Gross Profit Margin: 72.72%
   • Operating Margin: 54.12%
   • Net Profit Margin: 48.85%
   • Return on Equity: 69.25%

4. Debt and Solvency:

   • Total Debt: $9.71 billion
   • Liabilities to Equity Ratio: 0.53
   • Current Ratio: 4.17

5. Market Metrics:

   • Market Cap: $1.687 trillion
   • Price to Earnings Ratio (TTM): 89.04
   • Price to Sales Ratio (TTM): 37.52

Summary and Comparison

• Revenue and Profitability: NVIDIA leads in revenue and profitability metrics, with significantly higher margins and net income compared to AMD and Intel. Its gross profit margin is notably high at 72.72%, and it has a strong net profit margin of 48.85%.

• Cash Flow: NVIDIA also shows strong cash flow generation with a free cash flow of $33.67 billion, while Intel has negative free cash flow, indicating challenges in cash generation relative to its expenses.

• Debt and Solvency: All three companies have manageable debt levels, but NVIDIA's lower liabilities to equity ratio and higher current ratio suggest better solvency and liquidity.

• Market Metrics: NVIDIA's market cap is significantly higher than AMD and Intel, reflecting its strong market position and investor confidence. However, its high price-to-earnings and price-to-sales ratios indicate a premium valuation.

Pros and Cons

Pros for NVIDIA:

• Strong revenue and profitability metrics.
• High cash flow generation.
• Solid financial health with a high return on equity.

Cons for NVIDIA:

• High valuation metrics, which may pose a risk if growth expectations are not met.

Pros for AMD:

• Positive free cash flow.
• Manageable debt levels.

Cons for AMD:

• Lower profitability margins compared to NVIDIA.
• High price-to-earnings ratio, indicating a premium valuation.

Pros for Intel:

• Stable revenue base.
• Manageable debt levels.

Cons for Intel:

• Negative free cash flow, indicating cash flow challenges.
• Lower profitability margins and high price-to-earnings ratio.

Recommendation

Based on the financial data, NVIDIA appears to be in the strongest position with high profitability, strong cash flow, and solid financial health. However, its high valuation metrics suggest that investors should be cautious and consider growth expectations. AMD and Intel have their strengths, but they face challenges in profitability and cash flow.

Ratings:

• NVIDIA: 5/5
• AMD: 4/5
• Intel: 3/5

Please remember that this is not financial advice. It's important to conduct your own research and consider your financial situation before making investment decisions.

For more detailed information, you can refer to the sources provided:

• Source for AMD's Financial Data
• Source for Intel's Financial Data
• Source for NVIDIA's Financial Data

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