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Nvidia Corp. (NASDAQ:NVDA) has carried a reputation as one of the most expensive names in AI. A cooling AI trade and a scandal involving its CEO have changed the picture. On one key valuation metric, Nvidia now looks far cheaper than its old rival.

Nvidia trades at 11.8 times forward earnings, according to Benzinga Pro data. Intel Corp. (NASDAQ:INTC) trades at 33.33 times. Investors pay roughly 2.8 times more for each dollar of Intel’s expected profit.

• NVDA stock is tumbling. Get all the details here. 

Intel’s Run and Reversal

Intel spent much of 2026 as one of Wall Street’s hottest chip stocks. In May, Intel was trading at 108 times next-twelve-month earnings, the third-highest forward multiple in the Nasdaq 100.

Momentum cracked last month. Intel beat third-quarter expectations but issued fourth-quarter guidance well below estimates. Shares plunged as much as 30% the next day, putting the stock on track for its steepest one-day drop since 1974.

Nvidia’s Rocky Year

Nvidia has struggled to lead in 2026 and now faces a leadership question. CEO Jensen Huang admitted to a romantic relationship with a suspected Chinese spy in a message to employees, and the board announced an independent investigation.

Nvidia shares have given back their 2026 gains. Chipmakers, neoclouds and other data center names sold off in October on worries about rising interest rates and overspending.

The stock sits about 25% below its record close of $239.24 on Oct. 6, roughly 4% lower for the year and near its lowest close since early April.

The slide accelerated following the midterm elections last week, when shares plunged 9.3% in a single session, erasing more than $400 billion in market value.

Reading the Valuation Gap

A cheap multiple guarantees nothing. Earnings estimates can fall, and leadership risk rarely shows up in a P/E ratio.

A drawn-out board investigation or a slower data center buildout could push analysts to cut their numbers, which would lift Nvidia’s forward multiple without any move in the stock.

Intel’s premium rests on a manufacturing comeback still in progress, and its latest guidance showed how harshly the market punishes a stumble.

Nvidia reports earnings Nov. 17, and the results will test whether its discount reflects real risk or an overreaction. On forward earnings alone, Nvidia still costs far less than Intel.

NVDA Price Action: Nvidia shares were down 4.51% at $178.23 at the time of publication Monday, according to Benzinga Pro data.

Photo: USA TODAY Network via Reuters Connect