Historical valuation of NVIDIA shares: Cheaper than the S&P 500 – Is this the ultimate buying opportunity?

• NVIDIA faces further growth thanks to new “Ruby” GPU
• Current rating: A bargain?
• Cramer on NVIDIA course

NVIDIA’s growth dynamics at a glance

Although NVIDIA shares have shown unusual volatility for investors after an unprecedented rally since August 2025, the AI ​​giant’s operational momentum remains unbroken. This phase of price stagnation does not mark a decline, but rather an attractive entry opportunity as the company massively expands its technological market leadership, as The Motley Fool reports. While the previous NVIDIA ecosystem is already considered the undisputed industry standard for which customers willingly pay premium prices, the next quantum leap is already imminent with the new “Ruby” architecture.

This innovative GPU generation radically pushes the boundaries of efficiency: the cost of inference tokens drops tenfold, while AI training only requires a quarter of the previous hardware compared to the Blackwell series. Since companies will probably not use this performance increase for savings, but for even more complex and powerful AI systems, NVIDIA’s sales are likely to increase even further.

“Bargain” compared to the overall market

The currently unusually uncertain phase for NVIDIA shares could also mark a rare opportunity from a fundamental perspective. After significant price losses of over 10 percent since the beginning of the year, a bottom is likely to be forming, as Barrons explains. The most notable signal for investors is the current valuation: With a price-earnings ratio (P/E) of 19.7, the AI ​​giant is now trading cheaper than the S&P 500 average, which is 20.3, according to FactSet data. This ends an impressive 13-year era in which NVIDIA has consistently been valued at a significant premium to the benchmark index since February 2013.

Cramer on NVIDIA stock

In view of the current tensions in Iran, CNBC expert Jim Cramer also advises investors to switch their strategy from pure stock picking to military strategic analysis. In order to answer the question of whether the current price decline at NVIDIA offers an entry opportunity, Cramer also suggests a targeted checklist. First, it must be clarified whether the fall in prices is actually directly linked to the war.

“We know that we can’t predict the outcome of the war. We also can’t predict when, as today’s extension of the bombing pause shows… But we can assess whether the stocks we favor have a significant connection to the war,” said Cramer.

In the case of NVIDIA, he sees more practical reasons here: As the easiest stock in the world to trade, it is often sold quickly in times of crisis in order to generate liquidity or prepare for a re-entry at a lower level.

Another critical factor is interest rates, which could make the capital-intensive expansion of data centers more expensive. Nevertheless, Cramer warns against missing the boat if the conflict ends or monetary policy changes. Internal industry problems such as the current shortage of storage components and the associated high server prices also indirectly put a strain on customers’ budgets. However, the fundamental demand for NVIDIA chips remains “business-critical” and therefore largely resistant to fluctuating oil prices, since US data centers rely primarily on domestic natural gas with stable prices.

Cramer concluded by saying that investors need to figure out whether demand for NVIDIA products will wane regardless of the war. “It’s conceivable that the Gulf government money that has funded many data centers will dry up… But last week I attended the NVIDIA GTC conference and noticed that demand is incredibly high,” he said.

“Ultimately, this is a chance to buy a high-quality stock at a lower price than usual,” Cramer added. “You can’t estimate the timing. Don’t forget that.”

A look at the general attitude of experts towards NVIDIA also shows a continued optimistic picture. According to TipRanks, out of a total of 43 analysts, 41 experts recommend buying the stock, while only one hold recommendation and one sell recommendation are issued. The average price target is $273.34 and represents a change of 63.17 percent compared to the last price of $167.52 (as of March 27, 2026).

Evelyn Schmal, Martina Köhler, editorial team finanzen.net

This text is for informational purposes only and does not constitute an investment recommendation. finanzen.net GmbH excludes any claims for recourse.

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