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 tickersBTC-USD Bitcoin USD 66,192.44 -556.84 (-0.83%)ETH-USD Ethereum USD 1,989.37 -31.13 (-1.54%)XRP-USD XRP USD 1.32 -0.03 (-2.08%)SOL-USD Solana USD 81.24 -2.10 (-2.52%)BTC-CAD Bitcoin CAD 92,010.80 -774.02 (-0.83%)PortfolioSign in to access your portfolioSign inTop gainersAGX Argan, Inc. 566.62 +155.77 (+37.91%)U Unity Software Inc. 19.45 +2.32 (+13.54%)ADV Advantage Solutions Inc. 25.57 +2.99 (+13.27%)ADMA ADMA Biologics, Inc. 9.25 +0.96 (+11.58%)MEOH Methanex Corporation 65.22 +5.76 (+9.69%)Top losersFLY Firefly Aerospace Inc. 23.71 -3.10 (-11.58%)YOU Clear Secure, Inc. 47.44 -5.96 (-11.16%)ASTS AST SpaceMobile, Inc. 78.67 -9.19 (-10.46%)HNGE Hinge Health, Inc. 36.25 -3.93 (-9.78%)ZETA Zeta Global Holdings Corp. 14.55 -1.53 (-9.51%)Most activeNVDA NVIDIA Corporation 167.52 -3.72 (-2.17%)INTC Intel Corporation 43.13 -0.97 (-2.20%)GRAB Grab Holdings Limited 3.5700 -0.1400 (-3.77%)TSLA Tesla, Inc. 361.83 -10.28 (-2.76%)NU Nu Holdings Ltd. 13.60 -0.42 (-3.00%)Top economic eventsEarnings eventsMy earnings eventsEarnings events