The article argues that Nvidia's price-to-earnings multiple, which fell from 101.3 in mid-2023 to 26.5 today, does not by itself mean the stock is cheaper. Its share price rose 398.7% over that period, excluding dividends, while trailing twelve-month profit reached $193 billion, versus $10.3 billion in the twelve months to mid-2023. The multiple peaked at 143.1 in early 2023, when profit was about $4.8 billion, so the lower multiple partly reflects growth that has already happened. Profit rose 122.7% in the latest twelve months, faster than the 63.4% gain the year before and sales growth of 83.4%, while the multiple remains above the S&P 500's 22.9. The Compute & Networking segment made up 89.6% of revenue in fiscal 2026, and Nvidia is expected to report again in November 2026.
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Related tickers and likely impact
NVDA
• NeutralNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/23/2026 | 211.00 |
| Change that session | -0.57% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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