Nvidia Falls to 24x Forward Earnings as It Becomes Second-Cheapest Magnificent Seven Stock
Updated
Updated · The Motley Fool · May 27
Nvidia Falls to 24x Forward Earnings as It Becomes Second-Cheapest Magnificent Seven Stock
9 articles · Updated · The Motley Fool · May 27
Nvidia now trades at 24 times forward earnings, making it the second-cheapest Magnificent Seven stock behind Meta after a broader pullback in AI valuations.
That reset followed investor concern that AI shares had become too expensive, a shift that slowed performance late last year and in the first quarter.
The lower multiple comes despite Nvidia’s business surge: annual revenue jumped from $60 billion two years ago to $215 billion in its latest full year.
Management’s next growth case centers on AI’s move from training to inference and agentic systems, with Nvidia’s Vera Rubin platform scheduled to ship in the third quarter.
With the AI market projected to exceed $2 trillion by 2030, the valuation drop leaves Nvidia looking cheaper relative to peers even after a 1,200% five-year stock gain.
As its biggest customers become its biggest rivals, can Nvidia's AI chip monopoly truly survive?
Having lost the massive China market, how will Nvidia navigate the escalating global AI chip war?