Is Nvidia too cheap? It's 'cheaper than more than half of the S&P 500'
Why now
Thesis: Valuation debate shifts from expensive to relatively cheap
Catalyst to watch: Next NVDA earnings versus consensus estimates
Main risk: Valuation argument ignores cyclical peak-earnings risk
Why it matters
If NVDA's multiple has compressed while earnings grew, valuation is less of a headwind than the price rally suggests.
Details
Nvidia is now cheaper than over half of the S&P 500 on a valuation basis even though the stock has climbed 10x since November 2022, explains Ritholtz Wealth Management Data Research Associate Matt Cerminaro. Why? Earnings growth has been so strong that it's outrunning the stock's own gains. 😎
Sources
- youtube · 2026-09-25 21:18 UTC