Something very strange has been happening to Nvidia (NASDAQ:NVDA) stock. Yes, it’s skyrocketed in the past five years. And yes, the company has a market cap of over $5trn now.

But these latest events are making it look like a cheap value stock in my book. Let’s check what’s going on.

Another stunning quarter

On 20 May, Nvidia posted yet another set of record quarterly results. Here are some standouts from the first quarter of fiscal 2027…

• Revenue up 85% year on year to $81.6bn
• Adjusted earnings per share up 140% to $1.87
• Free cash flow up 86% to $48.6bn

What happened to the stock price? As of the time of writing on 1 June, Nvidia is down 5.5% since results day. And it’s fallen 10.7% from the all-time high it set in early May.

Still, that often happens to an overpriced stock even on the back of good results, right? Hmm, overpriced you say? I’ll come back to that, but there’s other important news.

The next PC revolution?

There’s a thing going on in Taipei called the Computex trade show. And Nvidia CEO Jensen Huang took the stage Monday (1 June) to announced the company’s new RTX Spark superchip. Nvidia is always announcing new chips, but this one is a bit different.

It incorporates a new N1X processor based on Arm Holdings technology — and development is in conjunction with Microsoft. But it’s not for AI data centres. No, it’s for powering PCs — desktop and laptop personal computers.

Huang talks about a petaflop of processing power, enough to run some seriously beefy LLMs. And it should drive blockbuster 1440p games at over 100 frames per second. HP, Dell, and others should be releasing PCs using the chip — and running Windows for Arm — in the autumn.

What does it really mean?

Jensen Huang isn’t known for holding back from expressing enthusiasm, so maybe we need some caution when we listen to him.

This reinvention of the computer is as big of a deal as the reinvention of the phone into what we now know as the smartphone.

–Jensen Huang, Computex 2026

But when he says that, I’m not going to dismiss it as hyperbole.

In response, Arm shares jumped over 10% in pre-market trading on the US market. And what about Nvidia, the lynchpin in the whole thing? A piffling 2% rise.

Yes, that stock valuation really must be high to keep investors from filling their boots.

So what’s it worth?

Except… it isn’t. Nvidia stock has a forward price-to-earnings (P/E) ratio of only 22.5. That’s well below UK growth champion Rolls-Royce Holdings and its P/E of 35.5 — which comes after a similar five-year price performance.

Some investors fear hyperscaler AI spending plans are, well, overhyped. Should the enormous sums they’re talking about fail to materialise, that could hit the earnings part of Nvidia’s P/E. And I see it as a realistic danger.

But I think growth investors should be considering Nvidia stock at today’s valuation — especially if there really is a new PC revolution in the offing.

Should you invest £5,000 in Nvidia right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Nvidia made the list?

Alan Oscroft does not hold any positions in the companies mentioned.