By Shashank Nayar
Publication Date: 2026-09-22 22:45:00
Nvidia’s stock is currently trading near its lowest earnings multiple in over a decade at under 17 times projected 12-month profits, down by half from its 2025 levels.
Despite strong fundamentals and projected revenue growth of 90% for fiscal 2027, Nvidia is lagging behind industry peers and is the fifth-worst performer in the Philadelphia Stock Exchange Semiconductor Index this year.
Investors remain cautious because declining gross margins from high component costs, along with rising competition from rival chipmakers and major tech clients building custom in-house silicon, weigh on the stock.
Nvidia Corp.’s (NVDA) plummeting stock valuation is flashing a warning sign regarding the chipmaker’s ability to maintain its massive profit trajectory.
Despite booming sales, shares of the artificial intelligence leader are trading at under 17 times estimated earnings over the next 12 months. According to data compiled by Bloomberg, this marks the stock’s cheapest valuation multiple in more than a decade.
Eli Horton, senior portfolio manager for thematic and durable growth equities at TCW, told Bloomberg that the sharp valuation drop highlights investor skepticism about the durability of Nvidia’s current earnings capacity. Horton observed that while the company’s financial performance…
