Nvidia's Stock Is Cheaper Than Intel's and AMD's. Here's Where I See It in 2026

"Over the past three years, stock has climbed by over 1,200% to dizzyingly high levels. It is now the most valuable company in the world and has a $4.63 trillion market capitalization. However, Nvidia is actually cheaper today than it was back then. Investors were proactive for a brief period in early 2023 as the stock went explosive, and many didn't wish to miss the train. Since then, the rally has turned more reactive. The stock price has been following Nvidia's earnings, so the premium paid for the stock has been shrinking."

"Wall Street is desensitized to Nvidia, but the company is powering on Nvidia's earnings reports early on caught Wall Street's attention with impressive earnings beats that only got wider and wider. Some of the most bullish analyst consensus estimates were trounced quarter after quarter, but this quickly became the norm. Paradoxically, these large wins turned heads but also looked too good to be true. Many still believe Nvidia is destined to end up like after the Dot Com bubble. That said, the current rally has been going on for longer and is supported by durable profits and high margins. Nvidia also claims to have $275 billion of backlog for 2026, and that number is expected to swell even further. Most analysts expect revenue growth to continue due to orders continuing to pick up speed, with even older chips being put into use by hyperscalers."

Nvidia's stock surged over 1,200% in three years to a $4.63 trillion market capitalization while current valuation on forward earnings has declined. Early 2023 buying drove an explosive rally, then the market shifted to reactive trading that tracks quarterly earnings, reducing the premium. Nvidia now trades at just over 25 times forward earnings compared with peers quoted much higher despite weaker margins and growth. Large, repeated earnings beats raised expectations and desensitized Wall Street, yet durable profits, high margins, and a reported $275 billion 2026 backlog underpin continued analyst revenue growth forecasts for FY2027.

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