The relative stock price of Nvidia (NVDA) has returned to attract attention on Wall Street after reaching the lowest level recorded since 2019. Although the company continues to show strong revenue growth and maintains a leading position in the artificial intelligence market, its valuation has undergone a significant decline over the past few months.
The indicator that shows this move is the price-to-earnings (P/E) ratio forward, a metric widely used to assess how much investors are willing to pay today for the expected profits over the next 12 months. Currently, this multiple stands at 22,22 times, the lowest level observed by the chipmaker in at least seven years.
The figure represents an important shift compared with the years of highest enthusiasm for companies tied to artificial intelligence. In June 2019, before the surge in demand for AI-focused hardware, Nvidia was trading at approximately 22,47 times its forward P/E, a level quite close to the current one.
Even with this drop in the multiple, the company’s financial fundamentals remain solid. In fiscal year 2026, Nvidia reported revenue of more than US$ 215,9 billion, a 65% increase compared with the prior period. Market projections still point to significant expansion, with expected revenue near US$ 392,7 billion in the current fiscal year.
When compared with the main competitors, Nvidia has a much lower multiple. The AMD is currently trading with a forward P/E estimated at 73,53 times, while Intel appears with an even higher index, close to 136.99 times.
The differences also show up in the companies' revenues. AMD closed its fiscal year 2025 with revenue of US$ 34.6 billion, while analysts project about US$ 49.8 billion for 2026. Meanwhile, Intel reported US$ 52.9 billion in revenue during 2025, with expectations of reaching approximately US$ 58.5 billion this year.
Nvidia's relative price decline is not tied to a deterioration in financial results, but rather to changes in investors' perception of the artificial intelligence market. In the first years of the AI race, the focus was concentrated on GPUs, a segment dominated by the company.
Subsequently, concerns emerged regarding chips developed by technology giants such as Amazon and Google, shifting part of the market's expectations. Then, interest returned to CPU-based solutions, following the evolution of active AI applications across different sectors.
In recent months, another shift has gained momentum among investors. Memory and storage chip manufacturers started receiving greater attention, driving their shares at an accelerated pace. Micron has accumulated a gain of 639% over the last 12 months, while Sandisk logged an increase of more than 3,400% in the same period.
After these strong gains, the market began to take profits and re-evaluate the prices of these companies. In the last month, Micron shares fell 2,7%, while Sandisk shares recorded a decline of 1%, indicating a pause in the momentum that had been favoring the memory segment within the artificial intelligence supply chain.