Nvidia valuation falls to decade low despite 90% profit growth

โดย Bloomberg·

Summary · why it matters

Nvidia stock is trading near its lowest valuation in more than a decade, according to Bloomberg, even as the chipmaker's revenue and net income are each expected to grow by roughly 90% or more in its current fiscal year. At under 17 times forward earnings, the multiple has been cut in half compared with 2025 and has fallen sharply from above 25 times expected profits just this past May. One drag is a squeeze on profitability: gross margin came in at 75% last quarter but analyst estimates compiled by Bloomberg show it sliding under 72% by the fourth quarter, with rising costs for components such as memory chips a central factor. Competition is another concern, with TradeStation global head of market strategy David Russell pointing to Meta Platforms and Alphabet designing AI chips internally, a shift he believes will erode Nvidia's pricing power and market share. Nvidia stock has gained 22% so far in 2026, second among the Magnificent Seven behind Apple's 25% advance, yet the Philadelphia Stock Exchange Semiconductor Index has surged nearly 76%, with Intel and Advanced Micro Devices both more than tripling. Chief Executive Officer Jensen Huang has pushed back, calling Nvidia the world's first and only growth value stock and incredibly misunderstood at a Goldman Sachs technology conference earlier this month.

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