{"id":548498,"date":"2026-07-14T02:47:26","date_gmt":"2026-07-14T02:47:26","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/548498\/"},"modified":"2026-07-14T02:47:26","modified_gmt":"2026-07-14T02:47:26","slug":"why-is-nvidia-the-worlds-most-valuable-company-cheaper-than-chocolate-maker-hershey-the-irish-times","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/548498\/","title":{"rendered":"Why is Nvidia, the world\u2019s most valuable company, cheaper than chocolate maker Hershey? \u2013 The Irish Times"},"content":{"rendered":"<p class=\"c-paragraph paywall \">\u201c<a href=\"https:\/\/www.irishtimes.com\/tags\/nvidia\/\" target=\"_self\" rel=\"nofollow noopener\" title=\"https:\/\/www.irishtimes.com\/tags\/nvidia\/\">Nvidia<\/a> is world\u2019s most valuable company and cheaper than <a href=\"https:\/\/www.irishtimes.com\/tags\/hershey\/\" target=\"_self\" rel=\"nofollow noopener\" title=\"https:\/\/www.irishtimes.com\/tags\/hershey\/\">Hershey<\/a>\u201d made for a striking Bloomberg headline, capturing the peculiar reality that the company at the centre of the <a href=\"https:\/\/www.irishtimes.com\/tags\/artificial-intelligence\/\" target=\"_self\" rel=\"nofollow noopener\" title=\"https:\/\/www.irishtimes.com\/tags\/artificial-intelligence\/\">AI<\/a> revolution now trades on a lower valuation multiple than a US confectionery group best known for its chocolate bars.<\/p>\n<p class=\"c-paragraph paywall \">Nvidia has lost some $1 trillion in market capitalisation since peaking in May, with <a href=\"https:\/\/www.irishtimes.com\/tags\/apple\/\" target=\"_self\" rel=\"nofollow noopener\" title=\"https:\/\/www.irishtimes.com\/tags\/apple\/\">Apple<\/a> now within striking distance of reclaiming the title of the world\u2019s most valuable company.<\/p>\n<p class=\"c-paragraph paywall \">More strikingly for valuation types, its forward price-earnings ratio has fallen to about 20 times earnings, depending on the measure used. That is roughly half its 10-year average, and Nvidia\u2019s lowest valuation multiple in seven years.<\/p>\n<p class=\"c-paragraph paywall \">The stock now trades broadly in the line with the S&amp;P 500 and well below many of its mega-cap peers \u2013 especially Apple, a company with slower growth prospects but a long record of profitability, which trades on about 32 times estimated earnings.<\/p>\n<p class=\"c-paragraph paywall \">Indeed, looking further out, Nvidia trades on less than 11 times 2029 earnings estimates. <\/p>\n<p class=\"c-paragraph paywall \">The reason investors are cautious is such forecasts assume Nvidia can sustain today\u2019s extraordinary levels of profitability. <\/p>\n<p class=\"c-paragraph paywall \"><a href=\"https:\/\/www.irishtimes.com\/tags\/bank-of-america\/\" target=\"_self\" rel=\"nofollow noopener\" title=\"https:\/\/www.irishtimes.com\/tags\/bank-of-america\/\">Bank of America<\/a> argues the market, assuming margin pressure and tougher competition, is already pricing in an \u201cunjustified\u201d 30-35 per cent earnings headwind over the next two years.<\/p>\n<p class=\"c-paragraph paywall \">After years of being driven by AI optimism, then, Nvidia\u2019s next move may depend on something much less glamorous and more old-fashioned: whether its actual earnings continue to outperform expectations.<\/p>\n","protected":false},"excerpt":{"rendered":"\u201cNvidia is world\u2019s most valuable company and cheaper than Hershey\u201d made for a striking Bloomberg headline, capturing the&hellip;\n","protected":false},"author":2,"featured_media":548499,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[936,218,2414,72,232472,61,60,233],"class_list":["post-548498","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-apple","tag-artificial-intelligence","tag-bank-of-america","tag-business","tag-hershey","tag-ie","tag-ireland","tag-nvidia"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/548498","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=548498"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/548498\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/548499"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=548498"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=548498"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=548498"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}