nvidia and asml: are these semiconductor stocks a buy now?

nvidia and asml: are these semiconductor stocks a buy now?

2025-08-14 general

New York, Thursday, 14 August 2025.
nvidia and asml demonstrate financial strength. Their balance sheets show substantial cash reserves. Levered free cash flow is also strong. Analyst ratings indicate positive future earnings. Revenue forecasts suggest continued growth. Market confidence in both semiconductor leaders remains high. Investors should pay close attention to upcoming earnings reports. Industry trends will also be important in assessing future stock performance. nvidia’s net income attributable to common shareholders grew from $631 million in 2015 to $72.88 billion in the year ending 2025.

nvidia’s revenue surge

Nvidia’s annual total revenue has seen substantial growth. It increased from $4.682 billion in 2015 to $130.497 billion by the year ending January 2025 [7]. This represents a significant expansion in the company’s market presence and financial performance. Investors may view this revenue surge as a positive indicator of Nvidia’s ability to capitalize on market opportunities. The company’s net income from continuing operations also reflects this growth, rising from $631 million in 2015 to $72.88 billion by 2025 [7].

key financial metrics

Several key financial metrics highlight Nvidia’s strong performance. Net cash from operating activities increased substantially. It grew from $906 million in 2015 to $64.089 billion in 2025 [7]. Total assets also saw considerable growth. They rose from $7.201 billion in 2015 to $111.601 billion in 2025 [7]. These figures suggest improved operational efficiency and effective asset management. Investors often look at these metrics to assess a company’s financial health and growth potential.

profitability ratios

Nvidia’s profitability ratios reflect its financial health. The return on assets (ROA) ranged from 8.73% in 2015 to 82.20% in 2024 [7]. The return on common equity (ROCE) fluctuated from 14.22% in 2015 to 119.18% in 2024 [7]. Earnings before interest and taxes (EBIT) increased significantly. It rose from $773 million in 2015 to $82.487 billion in 2024 [7]. These ratios indicate Nvidia’s increasing efficiency in utilizing its assets and equity to generate profits.

potential impact of trade policies

Trade policies could introduce uncertainty for investors. Nvidia and AMD’s strategy to pay 15% of their chip sales revenue in China to the U.S. government has sparked debate [8]. This strategy aims to maintain access to the Chinese market amid trade tariffs [8]. Some experts have labeled this arrangement as ‘extortion,’ while others question its legality [8]. Investors should monitor policy stability. Sudden shifts in government policy could impact American companies [8].

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