Nvidia Stock Hits 7-Year Valuation Low Even as New AI Orders Roll In
Nvidia Corp’s forward price-to-earnings ratio has slumped to its lowest point since early 2019—a striking reversal for the chipmaker that has become the face of Wall Street’s AI enthusiasm. Shares sit nearly 20% off the October record, and right now, the stock is trading at about 19.6 times projected 12-month earnings. That’s just under the S&P 500’s multiple, which hovers near 20. The gap stands out, considering analysts expect Nvidia’s profits to jump more than 70% this fiscal year. For the S&P 500, that number is closer to 19%.