Nvidia shares hit decade-low valuation despite 90 per cent growth forecast
Nvidia trades at less than 17 times expected profit, the cheapest in a decade, down from more than 25 times in May.
Nvidia's stock price has fallen far, now trading at its lowest valuation in over ten years. The chipmaker forecasts 90 per cent revenue growth and 99 per cent net income growth.
The valuation has dropped to half what it was in 2025, when earnings growth was actually slower. The sharp markdown reflects deep doubt that Nvidia can sustain explosive profit expansion.
Even after the shares staged a five-day rally this week, the discount persists. This gap suggests the broader market is betting Nvidia's boom will cool faster than the company expects.
- less than 17 times profit
- Current valuation
- more than 25 times
- May 2025 valuation
- 90 per cent
- Revenue growth forecast
- 99 per cent
- Net income growth forecast
Why it mattersWhen a company's stock price falls while fundamentals stay strong, it signals investors see hidden risks ahead, often a leading indicator of slowing growth.
AustraliaAustralian investors holding Nvidia shares face a bet on whether the chipmaker can meet its own forecasts; if growth slows, the discount could deepen further.
✓ Claims checked against the source. checked 2 d ago
