Nvidia's Valuation 'Too Cheap to Ignore' as P/E Hits 34 Despite 85% Revenue Surge

Nvidia (NVDA) trades at a price-to-earnings ratio of 34 and a forward P/E around 25, prompting some analysts to label the stock as cheap given its 85% year-over-year revenue growth in the fiscal 2027 first quarter ended April 26, 2026. The AI chip giant’s shares have soared roughly 1,800% since the 2022 bear market low, reaching a market capitalization of $5.4 trillion as of June 5, 2026. While no company has yet surpassed a $6 trillion valuation, Nvidia’s fundamentals suggest room for further gains. The chipmaker’s earnings are expected to climb alongside sustained double-digit revenue expansion, supporting the potential for continued outperformance versus the S&P 500’s 10% long-term average annual return and the VanEck Semiconductor ETF’s 29% historical average. Still, investors should temper expectations—a repeat of the 1,800% rally appears unlikely in the near term, though Nvidia’s growth trajectory may still deliver above-market returns.