By Brian Sozzi
Publication Date: 2026-05-08 11:48:00
When Nvidia (NVDA) reports its latest earnings on May 20, it will likely do so with its stock trading at some of the lowest valuation levels in recent memory.
Nvidia stock is trading 10x below its three-year median price-to-earnings ratio of 32x, Goldman Sachs analyst James Schneider pointed out in a new note on Friday. He added that the stock is also trading at a steeper discount to peers versus historical levels (see chart below).
What’s up with Nvidia’s stock: Nvidia’s once-Teflon stock has recently entered a period of relative stagnation, lagging behind the broader tech indexes as investors grapple with artificial intelligence exhaustion and shifting market dynamics. Major customers have significantly ramped up the deployment of their own custom AI silicon, including Amazon (AMZN) (Trainium/Inferentia), Google (GOOG) (TPU), and Microsoft (MSFT) (Maia). This insourcing trend is beginning to signal a long-term peak in demand for Nvidia’s high-margin H200 and Blackwell chips.
Shares of Nvidia are up 13% this year, underperforming Advanced Micro Devices’ (AMD) 90% gain and Intel’s (INTC) 197% advance.
Goldman Sachs stays bullish: Schneider reiterated a Buy rating on Nvidia and a $250 price target. But he did jack up his earnings per share estimate by an average of 12%.
Schneider explained, “We expect investors to focus on: (1) the magnitude of upside to Nvidia’s $1 trillion datacenter…
