Nvidia’s forward P/E ratio drops to 22x, less than a third of AMD’s 67x, despite record $81.6 billion quarterly revenue.
Nvidia shares slid nearly 4% on July 29, extending a week-long pullback that pushed its valuation to the lowest level since 2019. The decline comes even as the company reported record $81.6 billion in revenue for FQ1 2027, an 85% year-over-year increase.
The company’s forward P/E ratio now stands at 22x, compared with AMD’s 67x, despite Nvidia’s dominant position in AI chips and a $1 trillion order backlog through 2027. Analysts project hyperscaler AI spending could reach $3 trillion to $4 trillion annually by the decade’s end.
Nvidia is also expanding into new markets, including a $200 billion server CPU segment, with $20 billion in Vera revenue expected this fiscal year. Its recent deal with Groq further strengthens its inference chip portfolio.