By Adam Spatacco
Publication Date: 2026-03-11 19:05:00
Shares of semiconductor giant Nvidia (NVDA +0.64%) are down just 1% in 2026. With a share price of nearly $185 as of the closing bell on March 10, Nvidia stock now trades about 11% below its all-time highs.
For perspective, Nvidia stock delivered triple-digit annual gains twice over the past three years. So this year’s dip has sparked a familiar question among investors: Is now the time to buy the dip in Nvidia, or is the stock swiftly becoming a falling knife?
Savvy investors understand that share prices reveal very little about a company’s worth. What matters more is a thorough understanding of underlying fundamentals, as well as market catalysts that could fuel further growth for the company.
And right now, those factors suggest Nvidia may still have plenty of room to run. Let’s dig into why the artificial intelligence (AI) darling is a compelling buy-and-hold opportunity for long-term investors.
Image source: Nvidia.
Nvidia is undervalued based on one critical metric
The forward price-to-earnings (P/E) ratio is a useful metric when assessing whether a stock is over- or undervalued. Right now, Nvidia’s forward P/E is hovering around 22. This is in line with its lowest levels throughout the entirety of the AI revolution, and also a few turns below the forward earnings multiple of the Nasdaq-100 index, which sits at about 24.
NVDA PE Ratio (Forward) data by YCharts.
Nvidia’s current forward P/E is heavily discounted compared to the company’s historical premiums,…