Nvidia Now Worth 35x Intel After 16-Year Surge And Valuation Gap Keeps Growing

Back in 2009, Nvidia Corp NVDA was a modest $5 billion chipmaker, overshadowed by Intel Corp's INTC $90 billion dominance.

Fast forward 16 years and Nvidia's market cap has skyrocketed to $3.3 trillion – making it 35 times more valuable than Intel's $95 billion. This extraordinary surge reflects Nvidia's transformation from a niche graphics card producer to the beating heart of the AI revolution.

Its GPUs now power everything from data centers to autonomous vehicles, fueling investor enthusiasm and a massive re-rating.

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Valuation Dynamics: Growth Premium Vs. Legacy Drag

Nvidia's current P/E ratio of 45.6, though high by traditional standards, actually sits below its 10-year average of 52.6, signaling that investors still see room for growth.

Its forward P/E of 31.4 and PEG ratio under two reinforce this bullish outlook.

Meanwhile, Intel struggles with a negative earnings yield and a sky-high forward P/E of 80, reflecting challenges in regaining its footing.

Intel's dated product lineup and execution issues contrast sharply with Nvidia's innovation-led momentum.

Looking Ahead: Earnings, Expectations, And The Future Of Chips

With Nvidia's first quarter earnings due May 28, the market is watching closely for signs of sustained growth amid a recent 20% monthly pullback.

For Intel, the road ahead looks steeper as it struggles to catch up in AI and advanced manufacturing.

Ultimately, the 35x valuation gap isn't just about current profits – it's a market verdict on which company is shaping the future of computing. For now, Nvidia continues to lead the charge.

• Jensen Huang Says He Wouldn’t Start Nvidia Again If He Were 30, Calling The Journey ‘Too Much’ Despite the Company’s Massive Success

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