Nvidia Stock is Cheap—What That Signals

Here’s a startling statistic: The last time Amazon shares traded as cheaply as they are now, as a multiple of earnings, was during the 2008 financial crisis, according to Koyfin data. Indeed, Amazon’s stock is so cheap that it’s trading at a discount to Walmart for the first time ever. 

Considering that Amazon’s revenue is growing at roughly a 12%-plus annual basis, and Walmart at closer to 5%, the disparity in their valuations doesn’t make much sense. Then again, it doesn’t make any sense that shares of AI chip giant Nvidia are now trading at their lowest forward earnings multiple in seven years—or that the valuations of Microsoft and Oracle have converged for the first time in a decade. Is this some kind of selective AI-wariness syndrome? (and if so, what does that mean for OpenAI’s and Anthropic’s IPO prospects?).