- Nvidia’s price / profit ratio is now lower than that of Chatgpt launched in 2022.
- The decline occurs in the middle of a wide drop in semiconductor stocks. NVIDIA shares are down 30% compared to their 52 -week summit.
- Melius’ search remains optimistic about Nvidia before her conference next week.
A close evaluation indicator Nvidia fell at unprecedented levels since the launch of Chatgpt.
The 12 -month price / benefit ratio of NVIDIA fell on Monday at 36.4 times, according to Ycharts data. The decline was driven by a sharp drop in prices in NVIDIA stocks, which ended on Monday down 30% compared to its intraday record reached in early January.
The multiple drop in evaluation makes NVIDIa cheaper today than when Chatgpt was published for the first time on November 30, 2022. The stock has been negotiated at its cheapest level since August 2019.
Ben Reitzes, Managing Director of Melius Research, said that the evaluation dynamic for Nvidia is also true on a P / E ratio
According to Reitzes, with a P / E ratio before 24 times, the Nvidia action is 41% cheaper than when launching Chatgpt.
Melius search
This is an impressive feat given that Nvidia’s actions have climbed 583% since Openai published Chatgpt in the masses.
In this case, the overvoltage of the stock price has been saved by profits, as Nvidia’s GPU activity exploded Due to the high demand from AI companies. NVIDIA’s net profit during the 2025 fiscal year climbed 788% compared to the 2023 fiscal year, which ended in January 2023.
Reitzes believes that there is an evaluation disconnection and said in a note on Monday that the risks were widely evaluated in semiconductor shares like NVIDIA.
“We remain very optimistic,” said Reitzes.
Part of the optimism stems from the NVIDIA GPU technology conference next week, where CEO Jensen Huang should assure investors that AI boom remains alive and reveals its product roadmap in 2027, according to Reitzes.
Another reason why Reitzs remains optimistic about Nvidia is that he saw this evaluation compression take place before in the shares of a faithful technological: Apple.
“A similar thing happened to Apple a long time ago, when its multiple forward went from 33 times the day it announced the iPhone in 2008 and went to 15 times at the end of 2008 in crisis,” said Reitzes.
“As you know, the mobile trend has not ended then-and Apple is now negotiated at 31x profits on much more important figures. If Nvidia reproduces its own version of this industry management, we could look at this period of uncertainty and have good laugh,” he added.
Melius Research prison NVIDIA to “buy” with a price target of $ 170, representing a potential for 60% compared to current levels.