Nvidia's Valuation Just Hit Lows Not Seen Since 2019, Even as Its Profits Doubled

NVDA reported record Q2 fiscal 2027 results with revenue of $96.2 billion, up 106% year-over-year, while adjusted earnings per share hit $2.22, a 120% increase that beat analyst estimates. Yet the stock's valuation compressed to less than 27 times earnings, a multiple not seen since early 2019, despite profits doubling.

The company expanded its partnership with AMZN's Amazon Web Services, which will deploy more than 3 million NVDA GPUs. Management issued Q3 revenue guidance of $108 billion, representing 89% year-over-year growth, signaling continued momentum in AI infrastructure demand.

The valuation disconnect highlights a market repricing NVDA's growth premium even as fundamentals accelerate. The AWS deal represents one of the largest GPU deployment commitments publicly disclosed, cementing NVDA's dominance in cloud AI training infrastructure.