By David Jagielski, CPA, The Motley Fool
Publication Date: 2026-08-10 23:50:00
It may seem ludicrous: the idea that a company with a $5.3 trillion valuation and the largest market cap of any publicly traded company might still be a cheap buy when factoring in its growth potential. But that’s precisely the bull case for chipmaking giant Nvidia (NASDAQ: NVDA).
While it has a sky-high market cap, it’s backed by strong financials. The company has been a profit-generating beast over the years, so its valuation relative to earnings isn’t outlandish. Some analysts and investors even argue that it may be a bargain.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
Is that really the case, and is tech stock a good buy, even at its elevated levels?
Nvidia’s stock seems like a bargain — if you believe analyst projections
A key metric for growth investors to gauge a stock’s value based on its long-term growth rate is the price-to-earnings-growth (PEG) multiple. It takes into account the stock’s current earnings multiple and divides it by the expected growth rate over the next five years. If it’s below 1.0, then the stock is considered a cheap buy. And the lower the PEG goes, the better of a buy it is.
Currently, Nvidia’s PEG multiple…
