Nvidia, the chipmaker that became synonymous with the artificial intelligence boom, is now trading at a lower valuation multiple than the broader S&P 500 index — a striking reversal for a company that spent much of the past two years commanding sky-high premiums.
According to Barron's, Nvidia's shares are trading cheaper than the S&P 500 on standard valuation measures, and analysts increasingly describe the stock as a "value play" — a term rarely applied to high-flying tech names. The stock has continued to slip, with MSN noting it looks more like a value opportunity "as it drops again."
The bull case is attracting prominent voices. Wedbush analyst Matt Bryson told CNBC that Nvidia is undervalued, and a separate analysis highlighted by Yahoo Finance suggests buying now could offer as much as 46% upside potential. An additional analyst cited by MSN also called the stock undervalued with "major upside ahead."
Not everyone is unreservedly optimistic. TheStreet reports that a five-star analyst revisited Nvidia specifically because of a "peculiar GPU demand situation" — a signal that the demand picture for its flagship chips is complicated, even if the long-term outlook remains positive. Meanwhile, Barron's notes that Nvidia's stock has lagged behind peers over the past year, and argues the company needs more than AI momentum to reclaim its lead — pointing to a new investment as a potential path forward.
A comparison piece on MSN also weighed Nvidia against AMD for AI investors in June, suggesting AMD has had a stronger recent run but that Nvidia could close the gap quickly.
Why it matters: when the world's leading AI chip company starts trading like a value stock, it signals either a genuine buying opportunity or a deeper rethinking of how much AI growth the market is willing to pay for — and that question affects every corner of the tech sector.