Bernstein Flags Nvidia as ’Historically Undervalued’ Amid GPU Demand Concerns
Nvidia’s valuation has plunged to levels seen on just 13 trading days over the past decade, with its forward P/E ratio of 25 now sitting at the 11th percentile of its historical range. Bernstein analyst Stacy Rasgon notes the stock trades at a 13% discount to the PHLX Semiconductor Index—a rarity for the chipmaker.
Despite a 34% year-to-date gain, outpacing the S&P 500’s 16% rise, Nvidia trails the semiconductor sector’s 41% surge. Recent declines of 7% reflect investor jitters over capital expenditures and GPU demand sustainability, though earnings continue to exceed expectations.
Bernstein maintains its outperform rating and $275 price target, asserting that buyers at current levels have historically been rewarded. The firm views Nvidia as uniquely positioned to capitalize on AI-driven demand, dismissing broader sector volatility as transient.
