Nvidia stock eyes all-time high as valuation falls near decade low

Traders Union
All News
Stocks
Nvidia forward P/E nears decade-low levels

All news

Top Stories

Editors' Picks

Stocks

Crypto

Economics

Currencies

Commodities

Business & Wealth

Market Voices

Mykhailo Ihnatenko

22.09.2026

Nvidia stock eyes all-time high as valuation falls near decade low — Nvidia growth meets margin risk

Nvidia is moving back into territory where buyers have more to prove. The closer the stock gets to its record high, the more attention shifts from the strength of the rally itself to whether that momentum can be sustained.

NVDA price prediction

24H -0.53%

$213.24

48H -1.06%

$212.09

7D -1.44%

$211.28

1M 7.41%

$230.25

3M 3.26%

$221.35

6M 4.73%

$224.5

12M 24.77%

$267.48

Detailed

Current price: $214.37 -2.8600 1.32%

Closed 10/16

Daily range 213.43

218.65

Weekly range 212.93

228.63

Nvidia currently trades for less than 17 times forward earnings, meaning its valuation is nearing its lowest forward P/E since it was established more than ten years ago. Its multiple was still more than 25x in May and is down by around 50% relative to 2025.

The operating view is positive. Revenues for Nvidia are projected to grow by nearly 90% in the 2027 fiscal year, with net income growing by almost 99%. The second quarter alone had a sales figure of $96.2 billion along with a gross margin of 75%.

Investor concern now is less about demand for AI chips and more about whether Nvidia can monetize the software revenue. As the costs of memory and components climb, margins may feel the heat, and Meta, Alphabet and other large customers continue developing their own processors. Analysts expect Nvidia’s gross margin to temporarily fall below 72% in the fourth quarter.

$228 becomes the key level before the ATH

The setup from the previous analysis played out in full. Nvidia reached the $223.50 target and continued higher.

For today’s session, $228 is the level to watch. A break and sustained move above it could accelerate the advance toward the all-time high at $236.54. That remains the base-case scenario over the next several days.

A drop back below $223.50 followed by a sustained move under that level would invalidate the setup. In that case, the risk of a correction toward $217 would increase noticeably.

Lower valuation leaves room but margins remain the key risk

Nvidia is in an unusual position. Growth remains exceptionally strong, yet the stock’s forward valuation has already compressed toward multi-year lows. That removes some of the valuation pressure that surrounded the shares earlier, but it also shows that investors are demanding more from future earnings.

A move toward fresh record highs will therefore depend on more than continued AI demand. The market will also want evidence that Nvidia can defend its profitability as component costs rise and hyperscalers push further into custom silicon.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.