Nvidia Stock Hasn’t Been This Cheap In Nearly a Year. Here’s What History Says Happens Next. | The Motley Fool

For as dominant a run as Nvidia (NVDA +0.10%) has been on over the past few years, the last few months have been rather boring. Since Aug. 1, 2025, the stock has risen a relatively slim 5%. Over that same time frame, the S&P 500 is up around 10%. This is disappointing for many investors (myself included) because Nvidia has been posting unbelievable results along the way. In fact, Nvidia’s stock hasn’t been this cheap in some time.

I think Nvidia’s stock being this cheap is a clear buying sign, and investors should consider loading up on the stock now because history has taught us over the past few years that now is the time to load up on Nvidia stock.

Nvidia’s stock isn’t as expensive as you may think

The big question is: How should I value Nvidia stock? There are several valuation techniques investors can use, including using trailing or forward earnings. Trailing earnings are usually a solid way to price a stock, but can be affected by one-time charges (like when Nvidia had to write down chip inventory that was slated to be sold to China in Q1 last year). You can also use the forward earnings metric, which uses analyst estimates. Those are projections, and a company could miss (or exceed) them. Both of these metrics clearly have flaws, but I think using them in tandem is a great way to assess where a stock is currently valued.

From the price-to-earnings standpoint, Nvidia’s stock trades at nearly the same lows it traded at during the tariff…