Nvidia has rarely been cheaper the last 10 years. Bernstein says buy it for 2026
You'll be hard pressed to find Nvidia at a bigger discount that it is now, according to Bernstein.
TL;DR
- Nvidia is trading at 25-times forward earnings, in the eleventh percentile of its valuation over the past 10 years.
- The stock is trading at approximately a 13% discount to the PHLX Semiconductor Sector Index.
- Nvidia shares have risen about 34% in 2025, outpacing the S&P 500's 16% gain but lagging the PHLX Semiconductor Index's 41% rally.
- The stock has experienced a recent 7% decline due to investor concerns over capital expenditures and GPU demand.
- Bernstein believes Nvidia is well-positioned for the new year and that investors buying at current levels have historically performed well.
- Bernstein has an outperform rating on Nvidia with a $275 price target.