Nvidia's Stock Hasn't Been This Cheap Since 2019. Here's Why It's the Best Buy in the Market Now.
2026-07-23 21:21
•Keithen Drury •The Motley Fool
••••• •••••••• Axe Capital view
Why Nvidia’s Discounted Valuation Matters for SA Investors
Nvidia’s rare cheapness in 2026 offers local investors a chance to play global AI growth through USD/ZAR and selective tech exposure.
Nvidia’s stock trading at a P/E of 31—its cheapest since 2019—isn't just a US tech story. It reflects a pullback despite Wall Street projecting 82% revenue growth this year and 42% next. This disconnect is unusual for a company driving the AI infrastructure boom. South African investors can’t buy Nvidia directly on the JSE, but the implications are local. A stronger USD fuels rand weakness, pressuring import-heavy sectors while benefiting exporters like AngloGold Ashanti and Naspers. Watch the USD/ZAR as a barometer for global tech enthusiasm. Meanwhile, local banks like Standard Bank and FirstRand should be watched for inflows if the rand stabilizes and credit growth resumes. If Nvidia’s AI narrative sticks and global demand for semiconductors ramps, the rand could remain under pressure, but high-growth sectors on the JSE will gain from rand depreciation while domestic demand may lag. This view could falter if US inflation spikes or geopolitical tensions hurt tech spending. this is just my opinion and not financial advice
I would watch USD/ZAR closely and selectively buy exporters like AngloGold Ashanti and Naspers while trimming rand-sensitive counters if the local currency weakens sharply. Avoid chasing local financials until credit growth shows clear signs of thawing.
- USD/ZAR
- Naspers
- AngloGold Ashanti
- Standard Bank
- US inflation surprises
- geopolitical shocks affecting tech spending
7/10
Nvidia's stock has underperformed the S&P 500 in 2026 despite strong business results, causing its valuation to reach its lowest point since 2019 at a P/E ratio of 31. The article argues this makes Nvidia an attractive buy given Wall Street expects 82% revenue growth this fiscal year and 42% next year, with the AI infrastructure build-out still gaining momentum. Nvidia trades at cheaper valuations than many peers while delivering superior growth rates.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Keithen Drury
Categories: Equities, Earnings, Technology, AI, Semiconductors
Tickers: NVDA, AAPL, GOOG, GOOGL, GOOGM, GOOGN, AMD, AVGO
Sentiment: Positive - Article presents Nvidia as an attractive investment opportunity with undervalued stock (P/E of 31, lowest since 2019), strong growth expectations (82% revenue growth this year, 42% next year), and superior growth compared to peers despite similar or lower valuations. Used as a comparison point to show Nvidia's relative valuation advantage; Apple trades at 40x earnings with only ~20% revenue growth expectations, making it appear overvalued relative to Nvidia.
Keywords: Nvidia, AI infrastructure, valuation, P/E ratio, semiconductor, stock performance, revenue growth
Insights:
- NVDA: Positive: Article presents Nvidia as an attractive investment opportunity with undervalued stock (P/E of 31, lowest since 2019), strong growth expectations (82% revenue growth this year, 42% next year), and superior growth compared to peers despite similar or lower valuations.
- AAPL: Neutral: Used as a comparison point to show Nvidia's relative valuation advantage; Apple trades at 40x earnings with only ~20% revenue growth expectations, making it appear overvalued relative to Nvidia.
- GOOG: Neutral: Used as a comparison point; trades at 27x earnings with ~20% growth expectations, suggesting Nvidia offers better value despite similar or lower P/E ratios.