By Adam Spatacco
Publication Date: 2026-09-26 12:02:00
One of the more curious semiconductor stocks so far in 2026 is Nvidia (NVDA +0.22%). As of this writing (Sept. 25), shares are up about 20% on the year. On the surface, this looks respectable considering Nvidia is handily outperforming both the S&P 500 and the Nasdaq Composite.
However, these gains look modest when compared to the monster years that have defined the artificial intelligence (AI) revolution. In 2023, Nvidia stock more than tripled. In 2024, it nearly doubled again. Even last year, Nvidia delivered nearly a 40% gain. The slowdown has investors asking an obvious question: Is the party winding down?
A mix of worries is at play here. For starters, some investors are susceptible to AI fatigue — the sense that the first wave of hype is already priced in. Meanwhile, others are torn on whether the big cloud companies can continue spending on capital expenditures (capex) at their current pace without choking their balance sheets. Finally, there is real competition emerging from Advanced Micro Devices and Broadcom. But these factors aren’t fatal to Nvidia’s future.
Image source: Getty Images.
Nvidia is trading at its cheapest valuation in a decade
Wall Street analysts currently forecast $15.68 in earnings per share (EPS) for Nvidia in fiscal 2028. At today’s price of roughly $225, that works out to a forward price-to-earnings (P/E) ratio of roughly 14.3. This is the lowest forward P/E Nvidia stock has carried on a multiyear estimate in 10 years.
The last time…
