Barron’s | Nvidia Stock Is Still Cheap
Nvidia stock is historically cheap headed into earnings.
The company is often viewed as one of the top beneficiaries of the artificial intelligence trade. Earnings have grown consistently in recent years as companies spend big to buy up the chips Nvidia makes to power AI, and that isn’t expected to stop anytime soon.
Fiscal 2027 earnings are expected to be $8.35 a share, which would be a 75% increase from the $4.77 a share Nvidia reported for fiscal 2026.
Still, Nvidia is trading at 24.3 times earnings expected over the next 12 months, which is far below its five-year average of 36.6 times, according to Dow Jones Market Data.
Nvidia stock has also risen 21% this year, lagging the broader chip sector, as the iShares Semiconductor ETF has gained about 70% in 2026.
“Even though Nvidia’s stock has performed well so far this year, there is inherent skepticism embedded in this name, principally because of the run the stock has seen over the past few years,” James Demmert, chief investment officer at Main Street Research, wrote on Wednesday. Still, he believes Nvidia stock is “attractive at current levels.”
Nvidia shares were up 1.8% in afternoon trading.
Disclosures: Main Street Research LLC (“MSR”) is an SEC registered investment adviser; however, this does not imply any level of skill or training, and no inference of such should be made. The opinions expressed herein are as of the date of publication and are provided for informational purposes only. Content will not be updated after publication and should not be considered current after the publication date. We provide historical content for transparency purposes only. All opinions are subject to change without notice and, due to changes in the market or economic conditions, may not necessarily come to pass. Mention of a security should not be considered a recommendation or solicitation to purchase or sell the security, and any securities mentioned may be held by MSR for client portfolios. The information posted represents an opinion as of the date published and should not be considered an investment recommendation. MSR does not become a fiduciary to any reader or other person or entity by the person’s use of or access to the material. The reader assumes the responsibility of evaluating the merits and risks associated with the use of any information or other content and for any decisions based on such content. Investment disclosure —neither the information nor any opinion expressed herein constitutes a solicitation by main street of the purchase or sale of any securities or other financial instruments nor a recommendation to hold, sell, buy, or own a particular security or sector in your portfolio and do not represent all securities purchased, sold or recommended for client accounts. The listener should not assume that an investment in these securities has been or will be profitable. Individual recommendations are tailored to individual portfolios. Main street client portfolios are managed separately and vary in regard to risk and return dependent upon individual client circumstances. A full list of all securities in the MSR client portfolio is available upon request.
