Nvidia stock may be a bargain. It’s cheaper than Starbucks.

Subscribe to enjoy similar stories. Nvidia—the stock market’s AI darling—is not only cheap in historical terms, but it is notably less expensive than some other stocks you might not expect. Nvidia stock is one of, if not the most, frequently discussed artificial-intelligence trades on Wall Street.

Its AI chips are the most popular, which lifted sales 114% to $130.5 billion in fiscal 2025 from the prior year. Hope for that kind of runaway growth lifted the price to 62.65 times forward earnings on May 18, 2023, though even that was far below the record of 125.91 in May 2009. Now, opinions appear to have changed.

The stock has fallen 14% this year, partly because President Donald Trump’s trade policies and cuts to government employment have raised fear of a recession. That has sent investors away from riskier investments, including previously high-performing tech stocks. The Nasdaq Composite has dropped 8.7% in 2025.

Nvidia investors are also nervous about potentially tighter controls on chip exports. With the decline in the stock price, Nvidia’s valuation has come down. The stock is currently trading at 23.3 times the per-share earnings expected over the next 12 months, which is below its five-year historic average of 40 times and a drop from the 31.2 times it was trading at on Jan.

1, according to Dow Jones Market Data. Now, the chip stock is cheaper than shares in a surprising variety of other companies. To begin with, Nvidia is the second-least expensive member of the Magnificent Seven, the tech stocks that led the AI rally in late 2022, 2023, and 2024.

Only Alphabet is cheaper, trading at 17.9 times forward earnings. Plenty of other tech stocks are more expensive. They include Accenture, which is trading at 24.5 times;