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

Nvidia's forward price-to-earnings ratio fell to 22.22x, its lowest since June 2019, despite record revenue of $215.9 billion in fiscal 2026, as investor focus shifts to other AI sectors like memory and storage chips.

The relative price of Nvidia's NVDA https://finance.yahoo.com/quote/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 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's stock hit that range was in June 2019, when it traded at 22.47x its forward price-to-earnings ratio. To put that into perspective, Nvidia rival AMD AMD https://finance.yahoo.com/quote/AMD/ is currently trading at a forward-looking P/E ratio of 73.53x. Intel INTC https://finance.yahoo.com/quote/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? It brought in $34.6 billion in its fiscal 2025, and analysts expect it 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 buildout and recent investor weariness of 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 and Google, and later it pivoted to central processing units CPUs as agentic AI has taken hold. More recently investors have turned toward memory and storage chip makers to get the best bang for their buck in the AI trade. Micron MU https://finance.yahoo.com/quote/MU/ stock, for example, has soared a staggering 639% over the last 12 months, while Sandisk SNDK https://finance.yahoo.com/quote/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 last month, shares of Micron have dipped 2.7%, while Sandisk 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