Nvidia's valuation just hit a multiyear low — even as revenue sets records

The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.

The relative price of Nvidia ( NVDA ) stock has dropped to levels the company hasn't seen since at least 2019, well before it became an AI darling.

The chip giant's forward price-to-earnings (P/E) ratio, which calculates a stock's current price relative to its earnings over the next 12 months, ticked down to 22.22x, according to Yahoo Finance AlphaSpace data.

The last time Nvidia stock hit that range was in June 2019, when it traded at 22.47x its forward P/E ratio.

To put that into perspective, Nvidia rival Advanced Micro Devices ( AMD ) is currently trading at a forward-looking P/E ratio of 73.53x. Intel ( INTC ) is trading at a forward P/E of 136.99x.

Of course, it's not as though Nvidia is in dire straits. The company's most recent fiscal 2026 revenue topped $215.9 billion, up 65% year over year and well ahead of the $11.7 billion it posted in 2019. And analysts are anticipating further gains of $392.7 billion in its current fiscal year.

AMD brought in $34.6 billion in its fiscal 2025, and analysts expect the company to hit $49.8 billion in 2026. Intel, meanwhile, saw revenue of $52.9 billion in 2025 and is anticipated to see $58.5 billion this year.

Nvidia's issue comes down to a broader AI trade than in the early stages of the AI build-out and recent investor weariness with AI spending more broadly.

The market has already gone through a number of permutations of the AI trade. First it focused primarily on graphics processing units (GPUs), then it moved to fears of competing chips from Amazon ( AMZN ) and Google ( GOOG , GOOGL ), and later it pivoted to central processing units (CPUs) as agentic AI has taken hold.

More recently, investors have turned toward memory and storage chipmakers to get the best bang for their buck in the AI trade. Micron ( MU ) stock, for example, has soared a staggering 639% over the past 12 months, while Sandisk ( SNDK ) is up more than 3,400%.

That trend, however, has taken a brief pause as Wall Street assesses those rapid stock increases. Over the past month, shares of Micron have dipped 2.7%, while Sandisk stock has ticked down 1%.

Email Daniel Howley at dhowley@yahoofinance.com. Follow him on X at @DanielHowley .

Click here for the latest technology news that will impact the stock market .

Read the latest financial and business news from Yahoo Finance

Sinergia Empresarial continuará el seguimiento de esta información sobre nvidia's valuation just hit a multiyear low — even as revenue sets records y ampliará la cobertura conforme se confirmen nuevos elementos relevantes para el ecosistema empresarial.