Nvidia's AI Dominance Solidifies as Stock Becomes Cheaper

As of October 28, 2025, Nvidia (NASDAQ:NVDA) stock has not maintained the meteoric rise seen in recent months. While other artificial intelligence (AI)-exposed companies have been surging, Nvidia's stock has started to look cheaper in comparison.

This change is largely due to analysts revising their earnings forecasts for Nvidia. Over the past few months, analysts have raised their projections, now expecting the company to grow earnings by an impressive 35.6% annually on average over the next three-to-five years. This has resulted in Nvidia's price-to-earnings-to-growth (PEG) ratio dropping to 1.15, a 36% discount to the sector average and a 31% discount to Nvidia's own five-year average.

Nvidia is no longer just a cyclical hardware company, but is transforming into a vertically integrated AI powerhouse. Its dominance in AI chips is well-established, but the firm is also building a strong software, data, and investment-driven ecosystem that creates powerful switching costs for developers and enterprises. Nvidia's venture portfolio, which includes stakes in high-growth AI startups, further diversifies the company and provides optionality on future technological frontiers like robotics and autonomous vehicles.

Despite concerns about chip demand normalizing, Nvidia's diversified business model and long-term growth prospects make it an increasingly attractive investment opportunity for the years ahead.