Nvidia Makes 4x Intel's Revenue—But Commands Half The Forward Valuation

In the battle of Silicon Valley titans, Nvidia Corp NVDA is leaving Intel Corp INTC in the dust – on both the income statement and the stock chart.

Despite generating almost four times as much revenue as Intel on an annualized basis, as Beth Kindig, the lead tech analyst at I/O Fund, noted on X, Nvidia trades at less than half Intel's forward price-to-earnings ratio. If that sounds backwards, you're not alone.

For its last reported quarter, Nvidia grossed $44 billion in revenues. This, compared to Intel’s last reported quarterly revenue of $12.67 billion, shows the former’s dominant positioning. For the year ended December 2024, Intel grossed $53 billion in annual revenues.

Moreover, Nvidia has ben growing its quarterly revenue at a rate of 70% YoY for the past two reported quarters. Won’t be long before Intel’s annual revenue has a tough time catching up with Nvidia’s quarterly revenue.

Despite the huge gap in revenue, the market values Nvidia's earnings far more conservatively: a forward PE of 34 versus Intel's frothy 79, per Benzinga Pro data. It's a head-scratcher – until you zoom out.

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Nvidia's Growth Engine Dwarfs Intel's

Over the past decade, Nvidia has clocked a staggering 41% compound annual revenue growth, accelerating into the AI era with unmatched momentum. That's not just fast – it's Tesla Inc TSLA-fast, even outpacing Elon Musk's empire, which posted a 39% CAGR over the same period.

And the stock? Nvidia's total return of 26,420% over the last 10 years – translating to a 75% CAGR – makes even Tesla's 1,740% return (34.6% CAGR) look tame. Meanwhile, Intel’s revenue has displayed negative compounded growth rates over the past three, five and 10 year periods.

This isn't just hype. It's a decade of dominant execution, powered by GPU leadership in gaming, AI training, and data centers. With the upcoming rollout of next-gen Blackwell chips and hyperscaler demand at full tilt, Nvidia's growth story still has legs.

Intel's Valuation Looks Disconnected From Reality

Meanwhile, Intel's valuation seems to live in a parallel universe. Its forward PE of 79 suggests either a miraculous turnaround in earnings or blind hope. While CEO Pat Gelsinger is pushing hard on foundry ambitions and AI chips, results have yet to catch up – and the revenue gap with Nvidia continues to widen.

So while Nvidia may seem expensive in absolute terms, it's arguably the better bargain when looking at what you get for every dollar invested.

For investors, the message is clear: growth, not nostalgia, is driving the market – and Nvidia is riding that wave better than anyone.

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