Google Gemini is identified as a major consumer of AI computing, impacting Nvidia's market.
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Why Is Nvidia Stock So Cheap?
Aug 18, 2026
The creator argues that Nvidia (NVDA) stock appears cheap based on forward P/E ratios and discounted cash flow analysis, especially when compared to slower-growing companies like Walmart and Costco. The low valuation is attributed to investor skepticism about the sustainability of Nvidia's recent surge in earnings per share, driven by AI demand, with concerns about customer concentration and future demand from hyperscalers.
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Meta Platforms is identified as a major hyperscaler customer whose future investment in data centers is a key factor for Nvidia's business.
Alphabet is named as a hyperscaler customer whose future data center spending is relevant to Nvidia's revenue sustainability.
Microsoft is identified as a major hyperscaler customer whose future capital expenditure plans are a key factor for Nvidia's business outlook.
Amazon is mentioned as a hyperscaler customer whose future capital expenditures could impact Nvidia's business.
Procter & Gamble is cited as a company with a higher forward P/E (19.5) than Nvidia, further supporting Nvidia's cheapness.
Costco is presented as a slow-growing business with a forward P/E of 42, making it appear more expensive than Nvidia.
Walmart is mentioned as a slow-growing business trading at a higher forward P/E (35) than Nvidia, highlighting Nvidia's relative cheapness.
Nvidia stock is considered cheap based on forward P/E and DCF valuation, trading at a forward P/E of 17.6 and a DCF fair value of $375 compared to its current market price of $225.
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NVDAbuy opened Aug 18, 2026
-2.55%