By Cris Tolomia
Publication Date: 2026-09-22 13:19:00
Nvidia stock is trading near its lowest valuation in more than a decade, according to Bloomberg, even as the chipmaker’s revenue and net income are each expected to grow by roughly 90% or more in its current fiscal year.
At under 17 times forward earnings, the stock’s multiple has been cut in half compared with 2025 — a period when Nvidia’s expansion was actually slower — and has fallen sharply from above 25 times expected profits just this past May, according to Bloomberg.
“The stock has de-rated pretty significantly, which suggests a healthy dose of skepticism that the company’s current earnings power is sustainable,” Eli Horton, a TCW senior portfolio manager overseeing thematic and durable growth equities, told Bloomberg. “The stock’s performance is surprising, given the backdrop of incredible fundamentals, but it tells you the market is expecting less than what the consensus is currently estimating.”
One drag on the stock’s valuation is a squeeze on profitability. Nvidia’s gross margin came in at 75% last quarter but analyst estimates compiled by Bloomberg show it sliding under 72% by the fourth quarter, with a recovery expected thereafter. Rising costs for key components such as memory chips are a central factor.
Competition is another concern. David Russell, global head of market strategy at TradeStation, pointed to the growing threat of customers building their own silicon, noting that Meta Platforms and Alphabet…
