Nvidia Valuation Falls to 24x Forward Earnings as $150 Billion Move Signals Slower Stock Momentum
Updated
Updated · Yahoo Finance · Sep 28
Nvidia Valuation Falls to 24x Forward Earnings as $150 Billion Move Signals Slower Stock Momentum
3 articles · Updated · Yahoo Finance · Sep 28
Summary
Nvidia now trades at about 24 times forward earnings, a markedly lower valuation even as the AI chip leader’s earnings keep rising.
More than 20% stock gains this year have lagged Nvidia’s recent breakneck pace because inflation worries, broader economic concerns and doubts about the speed of AI infrastructure spending weighed on demand.
Some investors also rotated out after locking in profits, shifting into other AI names that had not rallied as sharply.
Over five years, Nvidia’s annual revenue has climbed more than 700% and its stock more than 800%, leaving the lower multiple looking unusually cheap relative to its AI leadership and long-term growth outlook.