Company Snapshot with Charts I started buying Nvidia in July when the stock was around $200. I loved it at the time. I love you even more today. It’s exactly the kind of environment I’m looking for: a great company for sale. The Santa Clara-based chipmaker is at the center of the AI boom. The company’s graphics processing units (GPUs) provide the computing power behind many of the world’s most advanced AI systems, and its software and computing platforms help customers build and run AI applications. Key Takeaways Despite its dominant position in the industry, Nvidia has significantly underperformed the broader semiconductor sector. The company’s stock is trading at its lowest valuation in at least a decade. Nvidia’s business is still growing at an incredible rate. Nvidia stock has risen this year, but it has lagged far behind other semiconductor sectors. I see this as an opportunity. Businesses continue to grow at an incredible rate. And on September 28, NVIDIA added $150 billion to its stock buyback authorization, bringing the remaining total to $235 billion, to be executed by fiscal year 2028. This is the largest increase in share buyback authorization in the company’s history. Reasons to Buy Best Stocks on Sale Nvidia has underperformed the Philadelphia Semiconductor Index by 55% year-to-date and by 75% over the past year. Share price performance appears particularly disconnected from the strength of the underlying business. Nvidia remains the dominant player in server GPUs, with around 97% market share. To me, this is an opportunity to buy a leader stock while its stock price is below its peers. This valuation is persuasive. Nvidia’s poor performance means its stock is trading at a much lower valuation than in the past. The company’s stock has a forward P/E ratio of approximately 16.7 times, but the average P/E ratio over the past five and 10 years has been approximately 35 times. This week, the company increased its share buyback authorization by a record $150 billion, bringing the total remaining through fiscal 2028 to $235 billion. This represents about 4% of Nvidia’s market capitalization and is on par with Apple’s then-record $110 billion share buyback authorization in 2024. And I think this valuation could become even more compelling as earnings expand. Nvidia expects to generate earnings of approximately $22 per share in fiscal 2028. At the current share price, the stock trades at only about 10.7 times earnings. This is an attractive valuation for a company with Nvidia’s growth and dominant market position. NVDA YTD Mountain Nvidia, YTD continues to grow at an extraordinary speed There is no slowdown in business performance commensurate with the slump in stock prices. Nvidia’s revenue increased 106% year-over-year in its most recent quarter, and management expects revenue growth of approximately 70% in fiscal 2028. NVIDIA also says demand will outstrip supply through 2028. NVIDIA also expects more from the current generation of GPUs. Proprietary software platforms have become the industry standard, and new computing platforms such as Blackwell and Vera Rubin are extending their capabilities. It is also making further inroads into the CPU market. Demand across the industry remains very strong. Micron emphasized this point on its earnings call Wednesday night, saying memory demand continues to outstrip available supply as spending on AI infrastructure increases. In my view, the gross margin is also around 72%, reducing risk. Why now? Nvidia stock is nearing a 52-week high, but its valuation chart tells a different story. At a forward P/E ratio of approximately 16.7 times, the company’s stock is trading at its lowest multiple in at least a decade. The recently expanded share buybacks provide another reason to favor setting at these levels. That’s why I still think NVIDIA is a sell at its current valuation. Conclusion Nvidia remains the dominant player in AI computing, and its business is still growing at an incredible rate. With our leadership in GPUs, software, and next-generation computing platforms, you can benefit in multiple ways as your AI investments grow. I believe this is a company with enormous earning power that is not reflected in the current stock valuation. That’s why I continue to buy it. Stephanie Link is Chief Investment Strategist at Hightower Advisors, where she manages $8.5 billion in assets (as of June 4, 2026). She has 35 years of money management experience and serves on KKR’s Investment Council. She earned a bachelor’s degree in finance from Boston University. Disclosure: Links are owned by Hightower Advisors. 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