You’ll be hard pressed to find Nvidia at a bigger discount that it is now, according to Bernstein. Nvidia is trading at 25-times forward earnings, putting the stock in the eleventh percentile of valuation over the past 10 years, Bernstein said Friday in a note to clients. Shares are also trading at a roughly 13% discount to the PHLX Semiconductor Sector Index. The firm noted that Nvidia has traded as such cheap levels in just 13 days over the past decade. “25 P/FE may not seem particularly cheap for your ordinary stock,” analyst Stacy Rasgon said in the note. “But this is NVIDIA.” Nvidia has had another strong year, rising about 34% in 2025. That’s more than enough to eclipse the S & P 500’s 16% advance in that time. However, it lags behind the broader semiconductor sector’s performance. The PHLX Semiconductor Index has rallied 41% in this year. Nvidia still a buy Nvidia is down about 7% over the past month. The AI stock has lost momentum, largely due to investors’ concerns over the firm’s eye-watering capital expenditures and demand for GPUs, even as its earnings continue to top expectations. However, shares are poised to gain ground in the year ahead, according to Bernstein. “While we understand some of the AI angst that has affected the sector lately, we believe Nvidia is set up well into the new year,” Rasgon wrote, noting that “investors buying Nvidia’s stock at current levels have historically done very well.” Bernstein has an outperform rating on Nvidia and a $275 price target on its shares.
