Can NVIDIA Outrun Texas Instruments in the Next Rally?
Texas Instruments surged 5.1% during the past day. You may be tempted to buy more or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer NVIDIA gives you more. NVIDIA (NVDA) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Texas Instruments (TXN) stock, suggesting you may be better off investing in NVDA
- NVDA’s quarterly revenue growth was 85.2%, vs. TXN’s 18.6%.
- In addition, its Last 12 Months revenue growth came in at 70.7%, ahead of TXN’s 14.9%.
- NVDA leads on profitability over both periods – LTM margin of 64.0% and 3-year average of 60.6%.
These differences become even clearer when you look at the financials side by side. The table highlights how TXN’s fundamentals stack up against those of NVDA on growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
| TXN | NVDA | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 42.2 | 33.3 | NVDA |
| Revenue Growth | |||
| Last Quarter | 18.6% | 85.2% | NVDA |
| Last 12 Months | 14.9% | 70.7% | NVDA |
| Last 3 Year Average | -1.1% | 121.7% | NVDA |
| Operating Margins | |||
| Last 12 Months | 36.0% | 64.0% | NVDA |
| Last 3 Year Average | 36.4% | 60.6% | NVDA |
| Momentum | |||
| Last 3 Year Return | 92.0% | 467.1% | NVDA |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
- NVDA, FSLR Look Smarter Buy Than Texas Instruments Stock
- NVDA, MU Top Texas Instruments Stock on Price & Potential
- Five-Year Tally: Texas Instruments Stock Delivers $29 Bil Gain
- Stronger Bet Than Texas Instruments Stock: MU Delivers More
- MU Looks Smarter Buy Than Texas Instruments Stock
- The Bear Case: How TXN Behaves During Market Shocks
See detailed fundamentals on Buy or Sell NVDA Stock and Buy or Sell TXN Stock. Below we compare market return and related metrics across years.
Historical Market Performance
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| TXN Return | 18% | -10% | 6% | 13% | -4% | 71% | 108% | ||
| NVDA Return | 125% | -50% | 239% | 171% | 39% | 20% | 1623% | <=== | |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 11% | 102% | ||
| Monthly Win Rates [3] | |||||||||
| TXN Win Rate | 67% | 42% | 58% | 50% | 50% | 50% | 53% | ||
| NVDA Win Rate | 58% | 42% | 75% | 75% | 67% | 67% | 64% | ||
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 67% | 65% | <=== | |
| Max Drawdowns [4] | |||||||||
| TXN Max Drawdown | -10% | -22% | -23% | -16% | -30% | -18% | -20% | ||
| NVDA Max Drawdown | -24% | -63% | -18% | -27% | -37% | -16% | -31% | ||
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | -13% | <=== | |
[1] Cumulative total returns since the beginning of 2021
[2] 2026 data is for the year up to 6/2/2026 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read NVDA Dip Buyer Analyses to see how the stock has fallen and recovered in the past.
Still not sure about TXN or NVDA? Consider a portfolio approach.
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Single stocks swing wildly, but staying invested matters. A well-built portfolio helps you stay invested, captures upside, and softens the blows from individual stocks.
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