Nvidia stock sends valuation signal for first time in 13 years

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per reporting from Barrons’, it’s now trading at nearly 19.7 times forward earnings, just under the S&P 500’s roughly 20.3 times, a steep reversal after years of premium pricing.That shift comes at a time when Nvidia’s fundamentals continue to impress, delivering explosive results across key top- and bottom-line metrics.Clearly, given the recent developments, investors are questioning what comes next, particularly whether its massive AI spending will translate into sustained returns.On top of that, growing competition, heavy reinvestment, and troubling customer concentration are adding to the tremendous uncertainty.That said, I recently covered Nvidia CEO Jensen Huang’s blunt take on the company’s future, where he said a $10 trillion valuation is not far-fetched.He framed Nvidia’s growth as “inevitable,” underscoring the tremendous increase in AI-driven demand and expanding compute economics.In that context, Nvidia’s valuation reset might be less about weakness and perhaps more about the market recalibrating expectations following a tremendous run.Nvidia stock loses premium valuation edge as AI giant trades closer to broader market multiplesPhoto by Benjamin Fanjoy on Getty Images · Photo by Benjamin Fanjoy on Getty ImagesBank of America: $300 (+79.1% vs. current price).Barclays: $275 (+64.2% vs. current price).Goldman Sachs: $250 (+49.2% vs. current price).JPMorgan: $265 (+58.2% vs. current price).Morgan Stanley: $260 (+55.2% vs. current price).UBS: $245 (+46.3% vs. current price).What’s happening with Nvidia stock isn’t happening in isolation.More Nvidia:Goldman Sachs sends blunt message on Nvidia stock after GTCNvidia CEO makes bombshell call on AI’s next big thingBank of America resets Nvidia stock forecast after meeting with CFOInvestors aren’t willing to pay for peak multiples for AI stocks, even for those businesses that deliver stand-out growth.We’re seeing that change show up across tech.The sector’s forward P/E has dropped to around 21, the lowest in three years, mirroring the broader market. However, earnings expectations haven’t weakened with the consensus still pointing to nearly 42.5% growth in 2026.That disconnect between falling valuations and relatively strong fundamentals is what makes thing stand-out.Nvidia sits at the heart of that tension.It’s still delivering solid numbers, including a smashing Q4 revenue of $68.1 billion, up 73% from the prior-year period, along with data-center sales of $62.3 billion, up 75%, and full-year revenue of $215.9 billion, up 65%.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoTrending tickersBFRG Bullfrog AI Holdings, Inc. 1.0500 +0.5417 (+106.57%)WDC Western Digital Corporation 251.67 -23.67 (-8.60%)MU Micron Technology, Inc. 321.80 -35.27 (-9.88%)ALAB Astera Labs, Inc. 100.27 -12.20 (-10.85%)ON ON Semiconductor Corporation 55.66 -2.69 (-4.61%)PortfolioSign in to access your portfolioSign inTop gainersUTHR United Therapeutics Corporation 588.36 +65.53 (+12.53%)BBWI Bath & Body Works, Inc. 18.67 +1.87 (+11.13%)CLMT Calumet, Inc. 35.04 +2.98 (+9.30%)GRDN Guardian Pharmacy Services, Inc. 37.25 +3.09 (+9.05%)AGRO Adecoagro S.A. 15.25 +1.20 (+8.54%)Top losersALMS Alumis Inc. 20.21 -4.59 (-18.51%)LASR nLIGHT, Inc. 54.00 -10.32 (-16.04%)SYY Sysco Corporation 69.30 -12.50 (-15.28%)NN NextNav Inc. 15.27 -2.60 (-14.55%)APLD Applied Digital Corporation 20.55 -3.21 (-13.53%)Most activeNVDA NVIDIA Corporation 165.17 -2.35 (-1.40%)SNAP Snap Inc. 4.0200 +0.0900 (+2.29%)INTC Intel Corporation 41.19 -1.94 (-4.50%)MU Micron Technology, Inc. 321.80 -35.27 (-9.88%)ONDS Ondas Inc. 8.15 -0.65 (-7.39%)Top economic eventsEarnings eventsMy earnings eventsEarnings events