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News  ›  Benzinga

Nvidia Stock Trades At 30% Discount: A Rare Value Opportunity For 2026?

Benzinga Logo Benzinga By Piero Cingari
Nvidia Stock Trades At 30% Discount: A Rare Value Opportunity For 2026?

Nvidia is trading at approximately 27x forward earnings, a 30% discount to its 5-year average of 38x, despite record fundamentals and strong analyst sentiment. CEO Jensen Huang unveiled the Vera Rubin chip platform at CES with significant performance improvements and cost reductions. While the stock has declined 10% since October despite rising Wall Street expectations, analysts see 37-45% upside potential. Growing competition from AMD, cloud giants' custom chips, and emerging players presents a headwind, though Nvidia's integrated hardware-software advantage remains intact.

Insights
NVDA   positive

Trading at significant valuation discount (30% below historical average) with record fundamentals, strong analyst price targets ($260-$275 implying 37-45% upside), innovative product launches (Vera Rubin chip, physical AI platforms), and maintained competitive moat despite growing competition.