Nvidia stock slipped another 0.9% to $206.41 in early Wednesday trading, extending a rough month that has seen the stock shed 7.8% since May.
That slide has pushed NVDA’s forward price-to-earnings ratio to 20.4 times — now sitting below the S&P 500’s 20.8 times, according to FactSet data.
That’s a shift worth paying attention to. Nvidia was already flagged as a bargain by Barron’s at around $226 with a forward P/E of 26 times. It’s now cheaper on that metric than the broader market.
Nancy Tengler, CEO of Laffer Tengler Investments, said her firm added Nvidia to its value portfolio after the recent pullback. “At roughly 20 times next year’s earnings and 23 times 2027 earnings, with expected earnings growth of 87%, we’d much rather be invested there than in a consumer staples company,” she said.
The dip comes despite Nvidia posting a strong earnings report last month and unveiling new hardware at Computex in Taiwan last week.
While short-term traders have been selling, at least one Wall Street analyst is using the pullback to make a bullish case.
Loop Capital Markets analyst Ananda Baruah issued a Strong Buy rating with a $350 price target — a potential 68% return from current levels around $209.
Baruah laid out three reasons for that call. First, he sees the broader tech sector entering what he described as the next wave of AI infrastructure build-out, with Nvidia positioned at the top.
Second, GPU shipment volumes are projected to double over the next 12 to 18 months, which he believes will push the stock higher heading into 2027.
Third, GPU pricing is rising fast. The average selling price of a single GPU has jumped from $26,000 to $33,000, driven by surging data center demand.
Beyond the growth story, Nvidia’s cash return plans are catching the eye of value-focused investors.
The company plans to return 50% of its free cash flow through dividends and buybacks. With free cash flow expected to hit around $194 billion in 2026, that works out to more than $97 billion heading back to shareholders.
That kind of capital return, combined with a valuation now below the S&P 500, is what’s drawing value investors to a stock not typically found in their portfolios.
At $206.41, NVDA is down roughly 11% from its recent highs, even as the stock remains up about 11% year-to-date.
Baruah’s $350 target implies roughly $141 in upside per share from current prices.
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