Nvidia Trades Near Decade-Low Multiple Despite ~90% Profit Growth Forecast

Nvidia (NVDA) is trading at under 17 times forward earnings, its lowest valuation in more than a decade, even as revenue and net income are each expected to grow roughly 90% or more this fiscal year, Bloomberg reported on Sept. 22, 2026. The multiple has halved since 2025 — a period of slower expansion — and fallen from above 25 times expected profits in May. Analysts attribute the de-rating to margin pressure and rising competition. Gross margin hit 75% last quarter but is projected to slide below 72% by the fourth quarter, partly on higher memory chip costs. TradeStation's David Russell cited customers including Meta Platforms and Alphabet designing AI chips internally, eroding Nvidia's pricing power. Nvidia shares have gained 22% in 2026, trailing the Philadelphia Semiconductor Index's 76% surge; Intel and Advanced Micro Devices have each more than tripled. CEO Jensen Huang called Nvidia "the world's first and only growth value stock" at a Goldman Sachs conference. TCW's Eli Horton called the multiple "a very favorable" entry point.