Nvidia’s Share Price and Valuation Update
Nvidia’s stock (NASDAQ: NVDA) has gained 24% in 2026, significantly lagging its competitor, Advanced Micro Devices, which surged 188%. As of September 29, Nvidia’s forward price-to-earnings (P/E) ratio has compressed to 19, its lowest level in a decade, while earnings expectations for the next four quarters average $12 per share. This valuation drop reflects investor concerns over the sustainability of the AI boom amidst rising competition and costs.
Historically, Nvidia’s P/E multiples do not remain compressed for long. Analysts suggest that with the current earnings growth and a potential expansion of the P/E ratio to 25, Nvidia’s share price could reach approximately $300 in the near term, indicating a potential upside of around 30% from current levels. A return to its long-term average P/E of 32 would imply a price closer to $384, or a 67% gain.
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