NVIDIA Shares Attractive as Forward P/E Compresses to a 10-Year Low

• • NVIDIA's forward price-to-earnings ratio has compressed to around 19x, the lowest reading in a decade.
• • Earnings estimates for the next 12 months growing faster than the share price is the main driver behind this valuation compression.

NVIDIA shares ticked up modestly but drew analyst attention after its forward price-to-earnings ratio compressed to around 19x, the lowest reading in a decade, even as the stock has gained roughly 24% in 2026. This compression occurred because next-12-month earnings estimates (a combined roughly USD 12 per share for the fiscal Q3 2027 - Q2 2028 period) grew faster than the share price, making the valuation look relatively cheap versus its historical average. Should the multiple re-rate to 25x, that implies a price near USD 300 per share; a return to its longer-term 32x average implies around USD 384 per share. The current price sits around $228.38 (Rp4093026), the official NASDAQ closing price confirmed by two independent market data sources with an identical reading. With entry in that area, a first target of $235.23 (Rp4215792), about 3.0% from entry, and a second target of $242.08 (Rp4338558), about 6.0% from entry, near and potentially above its 52-week high, open up if this valuation re-rating thesis gains market confirmation.

This is a medium-term valuation thesis rather than an immediate price catalyst, so the stock could remain range-bound in the near term even as the valuation looks attractive; AI chip competition and broader tech-sector sentiment remain key risk factors. This scenario is invalidated if price breaks below $220.00 (Rp3942840), the nearest psychological support area.