This UK share’s outperforming Nvidia. Is it time to buy?

With lots of hype surrounding US tech stocks, it’s sometimes easy to overlook UK shares.

For example, since December 2024, there have been dozens of domestic stocks that have performed better than Nvidia. And — since the start of 2025 – the FTSE 100’s gone up by more than the S&P 500. Okay, the differential isn’t very big but the Footsie’s done better. Neither of these facts appear to be widely reported.

I suspect some of this can be down to British modesty. Despite having a long history of inventing some amazing things, we tend not to shout about our achievements. Remember, we gave computers, lithium-ion batteries and the internet to the world.

And the London Stock Exchange is home to, in my opinion, some of the most impressive companies on the planet, including pharmaceutical giant AstraZeneca (LSE:AZN).

The UK’s most valuable listed company has a market-cap 94% lower than Nvidia’s, but its share price has performed better over the past 12 months. And AstraZeneca’s latest results suggest it’s on course to reach its target of $80bn of revenue by 2030.

Growing nicely

For the nine months ended 30 September, the group reported an 11% increase in revenue to $43.2bn compared to a year earlier. It also disclosed a 15% rise in core earnings per share. The group’s balance sheet is also improving. At 30 September, its net debt was $2.38bn lower than a year earlier.

During the period, the group announced an “unprecedented” 16 positive Phase III trials. As this is the final step in the approvals process it’s a leading indicator of potential future earnings. Developing new medicines is the biggest challenge AstraZeneca faces. That’s because the exclusivity period it enjoys for new treatments doesn’t last forever. Once this expires, others are free to produce ‘own brand’ alternatives that are often much cheaper.

But the group’s shares aren’t cheap. Having reached a record high in November, they’re currently valued at nearly 30 times forecast earnings for 2025.

Given that its future growth is dependent on reinvesting significant sums in developing new treatments, it might seem a little unfair to criticise the company for its relatively low dividend. However, it has to be acknowledged that a yield of 1.8% is below the FTSE 100 average.

Good news

But AstraZeneca and the UK pharmaceutical industry received a boost last week (1 December) following an announcement that there will be no tariffs on UK exports of medicines to the US. It was also revealed that the NHS has agreed to spend more for innovative drugs and reduce the level of rebate that companies must pay if revenue from the health service exceeds a pre-determined level.

The Association of the British Pharmaceutical Industry has welcomed these developments, which is probably a good indication that the country’s largest listed company will be one of the beneficiaries.

Overall, I think AstraZeneca’s one to consider.

However, it’s just one UK share that’s recently caught my eye. Compared to the US, the stock market on this side of the Atlantic appears cheaper at the moment. And British companies generally pay higher dividends than their international rivals. I think now could be a good time to consider UK stocks.

The post This UK share’s outperforming Nvidia. Is it time to buy? appeared first on The Motley Fool UK.

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James Beard has no position in any of the shares mentioned. The Motley Fool UK has recommended AstraZeneca Plc and Nvidia. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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