For Immediate Release
Chicago, IL – July 10, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks and ETFs recently featured in the blog include: NVIDIA NVDA, Advanced Micro Devices AMD, Intel INTC, VanEck Fabless Semiconductor ETF SMHX, Global X PureCap MSCI Information Technology ETF GXPT, VanEck Semiconductor ETF SMH and Strive U.S. Semiconductor ETF SHOC.
Here are highlights from Thursday’s Analyst Blog:
NVIDIA Valuation Falls to Multi-Year Low: Value Play or Value Trap?
Despite being a key player in the artificial intelligence (AI) space, NVIDIA is now trading at one of its lowest valuation levels in years, per a Yahoo Finance article. The company's forward price-to-earnings (P/E) ratio has fallen to 22.22x, its lowest level since at least 2019, according to Yahoo Finance AlphaSpace data.
The last time NVIDIA traded near this valuation was in June 2019, when its forward P/E stood at 22.47x – well before the AI boom transformed the chipmaker into one of the world's most valuable companies. NVIDIA’s trailing twelve-month (ttm) P/E ratio stood at 33.72X compared with 49.06X ratio possessed by the underlying Semiconductor – General industry.
NVIDIA Trades at a Discount to Rivals
NVIDIA's current valuation appears modest compared with its semiconductor peers. Advanced Micro Devices trades at a forward P/E of 73.53x, while Intel commands an even higher multiple of 136.99x, per Yahoo Finance. AMD’s P/E (ttm) was 112.69X while INTC’s P/E stood at 193.67X.
The lower multiple suggests investors have become more cautious toward NVIDIA despite its continued earnings strength.
Fundamentals Remain Strong
NVIDIA's lower valuation does not reflect weakening business fundamentals. The company generated $215.9 billion in revenue in fiscal 2026, representing a 65% year-over-year increase and a dramatic jump from the $11.7 billion it reported in 2019.
Zacks Consensus Estimate for earnings for the fiscal 2027 is $9.00, up 88.68% year over year. The estimate for fiscal 2028 is $12.14, up 34.83% year over year.
AI Investment Theme Broadens
During the early stages of the AI boom, investors focused primarily on graphics processing units (GPUs), where NVIDIA established a dominant position. Later, attention shifted to custom AI chips developed by major cloud providers such as Amazon and Google.
More recently, the market has increasingly focused on central processing units (CPUs) as agentic AI applications gain traction. Also, the U.S. Department of Commerce in late May decided to take step to halt NVIDIA’s most advanced AI chip shipments to Chinese firms outside China, per CNBC.
Moreover,in recent months, investors have increasingly rotated toward memory and storage chipmakers, viewing them as attractive ways to participate in the expanding AI ecosystem. However, that momentum has also cooled recently.
NVIDIA’s Price Target
Wall Street expects NVIDIA's growth momentum to continue, with analysts forecasting revenue of approximately $385.48 billion in the current fiscal year, marking a 78.52% annual growth, per Zacks.com. The Zacks Consus
Based on short-term price targets offered by 38 analysts, the average price target for Intel comes to $101.55. The forecasts range from a low of $45.00 to a high of $200.00. The average price target represents a decline of 8.01% from the closing price of $196.93 recorded on July 7, 2026.
NVIDIA’s Broker Rating
NVIDIA currently has an average brokerage recommendation (ABR) of 1.22 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell etc.) made by 50 brokerage firms. The current ABR compares to an ABR of 1.22 a month ago based on 50 recommendations.
Of the 50 recommendations deriving the current ABR, 44 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 88% and 6% of all recommendations. A month ago, Strong Buy made up 88%, while Buy represented 6%.
NVIDIA stock has a Zacks Rank #3 (Hold) rating with a good Growth score of “A.”
ETFs to Play
Against the above-mentioned backdrop, investors may wait on the sidelines and wait for the better entry point. Price target shows possibility of further decline. Investors can also play NVIDIA-heavy ETFs like VanEck Fabless Semiconductor ETF, Global X PureCap MSCI Information Technology ETF, VanEck Semiconductor ETF and Strive U.S. Semiconductor ETF. The basket approach minimizes the company-specific concentration risks.
Boost Your Portfolio with Our Top ETF Insights
Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.
Don’t miss out on this valuable resource. It’s free!
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Intel Corporation (INTC): Free Stock Analysis Report
Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
VanEck Semiconductor ETF (SMH): ETF Research Reports
Strive U.S. Semiconductor ETF (SHOC): ETF Research Reports
VanEck Fabless Semiconductor ETF (SMHX): ETF Research Reports
Global X PureCap MSCI Information Technology ETF (GXPT): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).