Nvidia's Stock Hasn't Been This Cheap Since 2019. Here's Why It's the Best Buy in the Market Now.

Nvidia (NASDAQ: NVDA) has been one of the best stocks to own over the past few years. However, so far in 2026, it has been just an average performer: It's essentially even with the S&P 500's (SNPINDEX: ^GSPC) gains year-to-date.

That tepid stock performance is out of step with its business results, as it has been crushing it lately. In fact, Nvidia's underperformance this year has actually caused its valuation to dip to its lowest point since 2019. That's why I believe the stock is one of the best buys in the market right now.

AI wasn't in focus the last time Nvidia was this cheap

On a trailing price-to-earnings (P/E) basis, Nvidia is trading at a ratio of about 31. The last time Nvidia's stock traded for about 30 times earnings was in 2019.

NVDA PE Ratio data by YCharts.

Nvidia's stock certainly has a long way to go before reaching the lows it hit that year again, but what's more notable is that Nvidia is now cheaper than it has been during any other time in the AI infrastructure build-out, which started in 2023. That's significant, because its outlook is quite strong.

For this fiscal year, Wall Street analysts expect Nvidia to deliver 82% revenue growth, and next year, they expect 42%. Those are still excellent results, and the reality is that the analysts are likely underestimating next year's growth, as Wall Street has consistently underprojected Nvidia's results.

The AI build-out is still gaining momentum, and that bodes well for the chipmaker's future. So, paying 31 times earnings for Nvidia seems like a smart move, especially when its big tech peers trade at similar or higher levels, with lower growth expectations. Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) trade for 40 and 27 times earnings, respectively. Both of these companies are lucky to grow their revenue at a 20% pace, let alone the nearly 100% growth Wall Street expects from Nvidia during Q2.

If you compare Nvidia to chip industry peers like AMD (NASDAQ: AMD) and Broadcom (NASDAQ: AVGO), these two trade for 165 and 63 times earnings, respectively. Yet Nvidia is growing at a faster pace than either of them.

NVDA Revenue (Quarterly YoY Growth) data by YCharts.

Nvidia is delivering incredible growth, and few companies can match it. With Nvidia trading at around the same (or cheaper) valuations as many of them, this valuation gap will widen even more. As a result, I think Nvidia is a fantastic buy, as the market isn't respecting Nvidia like it once did. Eventually, it will come back around, and when it does, Nvidia will be the best stock to own in the market once again.

Keithen Drury has positions in Alphabet, Broadcom, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Apple, Broadcom, and Nvidia. The Motley Fool has a disclosure policy.