This Key Metric Says That Nvidia (NVDA) Is Now a ‘Value Stock’

FomoAnxiety · 2026-03-19T00:47:15+00:00

Nvidia's recent revenue growth has led analysts to classify its stock as a value stock due to a low PEG ratio compared to competitors like Walmart and Costco. Despite concerns over AI investments, analysts maintain a Strong Buy rating for NVDA with significant upside potential.

FomoAnxiety

2026-03-19 00:47:15

Abstract generation in progress

Chipmaker Nvidia (NVDA) has now become a value stock, if a key market indicator is to be believed.

Claim 70% Off TipRanks Premium

Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
Stay ahead of the market with the latest news and analysis and maximize your portfolio’s potential

Nvidia recently reported blistering fourth-quarter 2025 revenue growth of 73% year-over-year, and CEO Jensen Huang said earlier this week that the company’s annual sales are likely to double to $1 trillion in 2027. Despite this meteoric growth, NVDA stock hasn’t budged since last summer. At $180 a share, Nvidia’s stock is at the same level it was at last August.

Now a key metric indicates that Nvidia, at current levels, is more of a value stock than names such as Walmart (WMT) and Costco Wholesale (COST). Specifically, Nvidia’s price/earnings-to-growth (PEG) ratio, an important stock valuation metric, is lower than most traditional value stocks. This makes Nvidia’s shares look incredibly cheap right now, say analysts.

New trading tool for NVDA bulls/bears

Valuing NVDA Stock

Nvidia’s PEG ratio currently sits at 0.78 versus Walmart at 5.76 and Costco at 5.20. Some analysts are referring to Nvidia as “a deep-discount value stock,” and note that technology stocks are cheaper than consumer staples stocks right now, which is highly unusual.

The main reason that Nvidia and other technology stocks have been treading water is that investors remain concerned about the billions of dollars being invested in artificial intelligence (AI) and a potential bubble forming within the AI sector. What will get NVDA stock, and other technology securities, moving higher remains to be seen.

But a growing number of Wall Street analysts agree that NVDA stock looks extremely cheap at current levels. Even CNBC host Jim Cramer posted on social media that Nvidia was becoming a “value stock.”

Is NVDA Stock a Buy?

Nvidia’s stock has a consensus Strong Buy rating among 39 Wall Street analysts. That rating is based on 38 Buy and one Hold recommendations issued in the past three months. The average NVDA price target of $273.61 implies 49.35% upside from current levels.

Disclaimer & DisclosureReport an Issue

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

2 Likes