Nvidia Stock Hasn’t Been This Cheap Since Before 2019. How to Play NVDA Stock Here. Nauman Khan Sun, July 12, 2026 at 11:33 AM PDT 4 min read NVDA ^GSPC Nvidia (NVDA) has been one of the biggest winners of the artificial intelligence (AI) boom, but investors are starting to ask a different question. After years of premium valuations, the latest Bloomberg report says that stock is now trading at its cheapest earnings multiple since before the AI rally began. That comes even after another blockbuster earnings report. Yet NVDA stock has struggled to revisit its highs as investors weigh slowing China growth, rising competition, and lofty expectations. More News from Barchart Taiwan Just Waved a Red Flag for Nvidia Stock Taiwan Semi Stock Is Approaching Fair Value Ahead of July 16. How to Play TSM Here. Forget GPUs. Nvidia's Next AI Gold Mine Could Be Even Bigger. Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. Is Nvidia's lower valuation creating a buying opportunity? Or is the market signaling that tougher days lie ahead? Nvidia's Stock Has Cooled Despite Another Strong Year Nvidia shares remain well ahead of the broader market, even after pulling back from their February highs. The stock is still up roughly 13% year-to-date (YTD) in 2026, outperforming the S&P 500's ($SPX) gain of about 11%. However, rivals have delivered even stronger gains this year. Intel (INTC) has surged roughly 198% YTD and AMD (AMD) has climbed about 160% as investors have rotated into semiconductor companies seen as having more room for multiple expansion. Nvidia's recent weakness has less to do with its business and more to do with investor expectations. The company has already produced extraordinary returns over the past two years, making NVDA stock vulnerable to profit-taking. At the same time, concerns surrounding China and export restrictions have added another layer of uncertainty. www.barchart.com The Valuation Looks More Attractive Than It Has in Years Although Nvidia still trades at a premium to most semiconductor companies, its earnings multiple recently fell to its lowest level since before the AI boom at roughly 18 times forward earnings. That's a more than 50% discount from its own five-year average. Currently, Nvidia has a forward price-to-earnings (P/E) ratio closer to 23 times. However, its price-to-sales (P/S) ratio remains elevated at around 22 times, showing expectations for continued rapid growth. Still, the P/E-to-growth (PEG) ratio sits near 0.45 times, suggesting analysts still expect earnings growth to more than justify today's valuation. The biggest question is whether those growth expectations remain realistic. Story Continues A new Bloomberg survey showed Chinese technology companies expect to allocate roughly 46% of their AI chip spending to domestic suppliers over the next year, up from about 30% currently. Beijing has also encouraged companies to reduce purchases of foreign AI processors, creating additional pressure on Nvidia's long-term growth in one of its largest overseas markets. Even so, Nvidia still controls roughly 85% of the global...
🔥 EXCLUSIVE PARTNER OFFER
25L/50L Sturdy Nylon Waterproof Tactical Sports Trekking Fishing Hunting Camping Hiking Bag Backpack Outdoor Rucksacks
Special Price
💎 Exclusive offer! The product everyone is talking about is now at a special price.
Affiliate link — Commission earned at no extra cost to you
© EcoNews DZ — Global Economic & Financial News
Comments
Post a Comment