Nvidia: Cheaper at $217 than it was at $52?
Nvidia (NVDA) is the most valuable publicly traded company in the world, with a of about $5.2 trillion as of October 2026. On 8 January 2024 its shares closed at $52.10, adjusted for the later . Today they trade at $217, more than four times that price. And yet, measured by its , Nvidia is valued far more cheaply now than it was then. In January 2024 investors paid 68.7 dollars for every dollar of the past year's . Today they pay 27.4. How can a that has quadrupled be cheaper than before, and what does a falling multiple tell an investor?
What Nvidia does
Nvidia designs the computer chips that power artificial intelligence, along with the networking equipment and software that make thousands of those chips work together. It is a : it doesn't build the chips itself. Factories run mainly by Taiwan Semiconductor Manufacturing (TSM) make them, and Nvidia sells the finished chips and systems to cloud companies such as Microsoft (MSFT), Amazon (AMZN), Google, owned by Alphabet (GOOGL), Meta (META) and Oracle (ORCL), to AI labs like OpenAI, and to businesses and governments. About 92% of , and nearly all of the profit, comes from this data center business.
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