By Brian Sozzi
Publication Date: 2026-01-27 16:15:00
Nvidia’s (NVDA) stock may be cheap headed into its Feb. 25 earnings report.
“This is the cheapest [valuation-wise] Nvidia has been for about three years,” B. Riley strategist Art Hogan said on Yahoo Finance’s Opening Bid (video above).
Hogan added, “So when you’re trading at 25 times forward earnings, which is going to go down after the upcoming earnings report because they’re going to raise their guidance, they’re the tip of the sword for artificial intelligence spend. I just think that, if anything, Nvidia is only going to reinvigorate the trade.”
To Hogan’s point, Nvidia’s valuation has compressed in recent quarters, according to Yahoo Finance data.
It has been touch-and-go for popular tech stocks like Nvidia in 2026. After several years of tech giants dominating the makeup of the S&P 500 (^GSPC) like never before, a different dynamic has emerged. The weight of the top 10 stocks in the S&P 500 has recently seen some “major deterioration” relative to the rest of the stock market, RBC Capital Markets strategist Lori Calvasina pointed out.
Sentiment on tech has soured as fears of overspending on AI infrastructure ratchets up.
Information technology is trading at its lowest valuation premium to the S&P 500 in the post-pandemic environment, according to Evercore ISI data. The price-to-earnings multiple for the “Magnificent Seven” is in line with its post-pandemic average, while the other 493 stocks in the S&P 500…
