By Faizan Farooque
Publication Date: 2026-09-30 22:32:00
Nvidia (NVDA) is recording some of the fastest growth in its history, yet investors are assigning each dollar of expected earnings an exceptionally lower valuation than the early days of the AI boom.
That valuation disconnect is landing as Nvidia pours an unprecedented amount of capital into share buybacks.
On September 28, the chip giant boosted its share-repurchase authorization by $150 billion, bringing the total to $235 billion. Nvidia said it plans to take advantage of the authorization through fiscal 2028, referring to the $150 billion increase as the largest share-repurchase authorization boost ever.
The timing matters. Nvidia’s second-quarter revenue jumped 106% year over year to $96.2 billion, while Data Center revenue jumped 117% to $89 billion. Yet its shares traded at roughly 16.5 times 12-month forward earnings, the lowest multiple since January 2015, according to Reuters.
That leaves Nvidia investors in a unique conundrum. Nvidia’s underlying business is still growing at healthy rates, but Wall Street is paying decidedly less for its expected profitability.
Nvidia’s earnings are growing faster than its valuation
Nvidia’s latest financial results don’t give the impression that we are looking at a company that is going through a slow-growth phase.
For its fiscal second quarter ended July 26, Nvidia reported revenue of $96.2 billion, up 106% from a year earlier. Data Center revenue…
