Nvidia (NVDA -0.98%) stock has been a disappointment for some investors in 2026. The stock price is up 15%, which is beating the broader market's 12% rise, but it isn't outperforming the way it has in the previous three years. In 2026, Nvidia has reported strong results so far that suggest the growth thesis continues, yet the market has grown skeptical.
This makes now a great time to consider buying. Just know that the window could be closing fast. On Wednesday, Aug. 26, Nvidia reports fiscal 2027 second-quarter results (for the quarter ending July 30). Because Nvidia is valued at an attractive level heading into earnings, this could be the last chance investors have to buy the stock cheaply, as there is a good shot the stock experiences a strong, significant rally following the report.
Given its continued stellar growth rate and reasonable valuation, I can think of few stocks that are better buys. All of that could change depending on the quality of Nvidia's earnings and the market's reaction afterward.
Image source: The Motley Fool.
Nvidia stock is cheap compared to its peers
Nvidia makes computing equipment, with most of its products centered around its GPU ecosystem. Nvidia GPUs are the industry standard in AI computing right now, and nearly every product that launches is compared to theirs. So, checking Nvidia's valuation versus its competitors is a smart move.
In the AI computing world, there are two primary types of computing units being deployed: Broad-purpose GPUs and custom AI chips. Advanced Micro Devices (AMD +0.81%) is a competitor in the eGPU space, while Broadcom (AVGO +1.21%) and Marvell Technology (MRVL -5.57%) are both competitors in the custom AI chip industry.
When all four of them are compared, Nvidia has by far the lowest valuation from a trailing price-to-earnings (P/E) perspective.
Data by YCharts.
However, the trailing P/E ratio leaves out one important factor: Growth. All four of these companies are rapidly expanding, so incorporating future growth projections is a smart idea for investors. By using the forward P/E ratio, we can incorporate growth projections for this fiscal year for each company. From this standpoint, Nvidia is still the cheapest stock.
Data by YCharts.
No matter how you slice it, Nvidia's stock is incredibly cheap compared to its peers. Furthermore, at only 24 times forward earnings, it's not that much more expensive than the S&P 500, which trades at 21.4 times forward earnings. With Nvidia barely holding a premium to the broader market, I'd say it's a pretty cheap stock for the growth it's delivering.
Data by YCharts.
If Nvidia blows expectations out of the water (Wall Street analysts currently expect 97% year-over-year growth), Nvidia's stock could be primed to rise, as it's starting at a relatively low valuation point. I think there's a good chance that it will kick-start a huge rally to end the year, making Nvidia a no-brainer stock to buy before Aug. 26.
