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Could Nvidia Be the Cheapest Way to Own the AI Boom Right Now? Here's What You Need to Know Before Earnings

Nvidia has badly lagged its sector in 2026, creating a valuation gap relative to its peer group.

Could Nvidia Be the Cheapest Way to Own the AI Boom Right Now? Here's What You Need to Know Before Earnings

Published August 25, 2026 · Category: Finance

Overview

Nvidia (NASDAQ: NVDA) has become the most dominant and profitable company in AI infrastructure, and it's not even close. It's also been one of the worst-performing chip stocks so far in 2026, despite posting incredible business results. While the PHLX Semiconductor Index has gained more than 60% so far this year, Nvidia is up by roughly 12% year-to-date as of this writing.

That's a big performance gap. Let's take a step back to look at why Nvidia has been such an underperformer in 2026, the important valuation metrics to know, and whether Nvidia is a cheap stock -- or cheap for a reason.

Image source: Getty Images.

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Originally published at www.fool.com.

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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.