An investor account says Nvidia is at its cheapest valuation in a decade, sharing a Bloomberg chart of its forward earnings multiple
Nvidia $NVDA is at its cheapest valuation in a decade.
Context
A record low multiple for the world's most valuable chipmaker would mean investors doubt its AI earnings will last, or that the stock is unusually cheap.
This is market commentary from an investor account. The chart credits Bloomberg, and Bloomberg reported in September that Nvidia's forward multiple was near its lowest in more than a decade, but the post does not give the current figure or the chart's date.
- Quartz: Nvidia stock is approaching its cheapest valuation in a decade, citing Bloomberg
- Investing.com analysis: Nvidia's record high masks a historically cheap forward multiple
- Advance Intelligence: Dray's Nvidia revenue and P/E chart
- Advance Intelligence: Polymarket says Jensen Huang called the AI stock selloff temporary
Deep dive
On October 18, the investor account NoLimit posted that Nvidia is at its cheapest valuation in a decade.
The attached chart, titled Nvidia Stock Valuation Hits Multiyear Low and sourced to Bloomberg, plots Nvidia's forward earnings ratio since 2016. It peaks near 70 times around late 2021 and above 60 times in 2023, then trends down to the high teens in late 2026, where a dashed line marks it as the lowest point on the chart.
Bloomberg reported on September 22 that Nvidia traded at less than 17 times forward earnings, near its lowest in more than a decade, about half its 2025 multiple and down from above 25 times in May. It said revenue and net income were expected to grow about 90% this fiscal year, and cited margin pressure from rising memory chip costs as one reason for the discount. An Investing.com analysis on October 6 put the multiple at 17.1 times as the stock hit a record high.
Shares fell in the following weeks. Other outlets cited forward multiples of about 24 to 25 times in mid October, so the figure depends on the earnings period used. A Bank of America analyst said on October 16 that Nvidia, Broadcom and Micron trade at about 13 times forward earnings on average, according to MarketDash.
A day earlier, the investor account Dray posted a chart contrasting Nvidia's revenue with its falling multiple.
What to expect next
Watch Nvidia's November 17 earnings report, which will update the forward estimates behind these multiples and show whether margins hold as Vera Rubin ramps.
Also watch whether the chip selloff deepens or reverses as rate expectations shift, and whether more analysts argue the stock is cheap or that earnings estimates are too high. Bloomberg's own updated figures would show whether the multiple has fallen further since September.