The last five years have been crucial for NVIDIA (NASDAQ: NVDA), primarily due to its adoption of artificial intelligence. As of 2026, its market capitalization stands at 4.203T, and its Trailing Twelve Months (TTM) Return on Investment (ROI) is hovering around 97%–98%. Though still a growth stock at its core, NVIDIA is gradually shifting to the definition of a “value stock.” The shift in perspective is driven by the fact that are growing even faster than its skyrocketing stock price, causing its valuation multiples to drop to levels typically seen in more “mature” companies.
Why is NVDA Being Assessed as a “Value Play”?
In the world of investing, a value play refers to a stock trading below its intrinsic value or historical average. NVDA, trading at roughly 21 times forward earnings in March 2026, falls into this category for multiple reasons. When the historical context is considered, NVIDIA’s forward P/E of 21x is indeed a significant “discount” compared to its 5-year average of approximately 64x and its 10-year trailing average of approximately 54x.
What bridges NVIDIA’s growth stock status to the value play status is its projected generation of over $1 trillion in revenue from its Blackwell and Rubin systems by the end of 2027. Its expected forward earnings in 2027 make the current price look cheap, making it a value play. With its Price/Earnings to Growth (PEG) ratio currently estimated at around 0.79, which is below 1.0, NVIDIA is considered undervalued relative to its expected 60%+ earnings growth. In an era where “Magnificent Seven” peers like Microsoft and Apple often trade at much higher PEG ratios, Nvidia appears to be the most “on sale” growth engine in the sector.
The Blackwell and Vera Rubin Catalyst
NVIDIA’s product catalog, which offers unparalleled value to investors, is the key driver of its massive projected earnings. Under the leadership of CEO Jensen Huang, the company has successfully transitioned from the Blackwell architecture to the newly announced Vera Rubin platform. NVIDIA’s resolve to launch AI chips with renewed functionalities every year has resulted in tech giants such as Meta Platforms and Amazon purchasing them. This has naturally increased NVIDIA’s revenue and earnings potential.
The Blackwell chips, which became the industry standard for LLM (Large Language Model) training, will now be complemented by the Rubin platform’s efficiency. Furthermore, Nvidia’s expansion into CUDA-Q for quantum-classical computing and its overwhelming dominance in data centers have established a formidable “moat,” creating high entry barriers to competitors like AMD and Intel, who are struggling to breach.
NVIDIA’s Customer Base Boosts Its “Value Play” Status
The hyperscalers, namely Alphabet (Google), Amazon, Meta Platforms, and Microsoft, constitute a major portion of NVIDIA’s customer base, and they continue to pour billions into capital expenditures. These companies are not just buying chips; they are building the sovereign AI infrastructure of the future. These companies are increasingly integrating AI into every facet of their work, which makes the demand for Nvidia’s H200 and Blackwell B200 units insatiable. NVIDIA has been partnering with the Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung to ensure that the supply chain of AI chips remains intact to meet the rising needs.
Is NVIDIA Investments an Opportunity Now?
Investing in NVIDIA is no doubt an opportunity, given its current status. However, there are several looming risk factors that need immediate resolution. These include ongoing export controls and trade tensions regarding AI-silicon, competition from producers like Amazon Trainium and Google Tensor Processing Units (TPUs), and the cyclical boom and bust nature of the semiconductor industry.
However, investing in NVIDIA stocks is a Growth at a Reasonable Price (GARP) strategy because of its explosive growth with the use of AI, with a valuation multiple that provides a margin of safety usually reserved for blue-chip value stocks. The current 21x forward earnings are the right entry point if NVIDIA accomplishes its goal of becoming a trillion-dollar AI economy in the future. For investors looking to capitalize on AI, Nvidia isn’t just a growth stock; it’s a calculated value play.
