Nvidia Is Selling More Than Ever, but Its Stock Looks Cheaper
Nvidia's stock looks cheap compared to expected profits even after huge sales, Bloomberg reported on September 22, 2026. Bloomberg said the low valuation raises doubts about whether booming profit growth can last.
The report came weeks after Nvidia said sales for the quarter ended July 26, 2026 were $96.2 billion, up 106% from a year ago, according to Nvidia. Data Center sales were $89.0 billion, up 117%. Nvidia calls itself the pioneer of GPU-accelerated computing, with products for gaming, professional graphics, data centers, and cars.
The price-to-expected-profits measure, called forward P/E, fell even as sales grew. Nvidia lost about $1 trillion in market value in less than two months before July 8, 2026, and the stock was the cheapest it had been since before the AI boom, according to Bloomberg. That July fall took forward P/E back near June 2019 levels, when it traded at 22.47 times forward earnings, according to Yahoo Finance.
The drop did not start in July. Nvidia's P/E fell to a seven-year low as of March 30, 2026, according to Reuters. MarketWatch's page for NVDA mentions a historic $150 billion buyback plan by Nvidia. A separate MarketWatch report, with no date and so less important than the 2026 reports, had put the stock at 35.99 times expected earnings for the next 12 months and called it relatively inexpensive after a big rally.
Some market analysts disagreed with the fall. In August 2026, BofA said Nvidia shares could be trading at a discount of up to 50% because of AI worries, according to Bloomberg. On August 24, 2026, MarketWatch ran a piece titled It's time to bet big on Nvidia's stock, says this analyst who thinks the market has it all wrong. Earlier MarketWatch pieces from December 2025 also said the stock was unusually cheap and almost historically cheap, and that history pointed to possible gains ahead.
The broader context here is that the worry is not about today's sales. It is about whether big profits will last. Like paying less for a lemonade stand because you are not sure next summer will be as busy, investors paid less for each dollar of expected profit. That can mean slower growth, thinner profits on each sale, or heavy spending on AI gear. That drop is called de-rating.
In my view, savers should look at the pattern, not one headline. A seven-year low in March, a pre-AI-boom price in July, a 50% discount claim in August, and a September warning all tell the same story about doubts over AI spending. The $150 billion buyback and the $89.0 billion Data Center quarter sit on opposite sides. One helps profit per share by cutting the share count. The other must be repeated to justify the old higher price. What counts for pensions and savings is whether Data Center sales keep growing and turn into real cash, not whether the stock looks cheap versus the past.
