Nvidia Stock Drops as Forward P/E Falls Below S&P 500
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- Nvidia closed Friday at $167.46, down 2.21% as investors noted its forward P/E fell below the S&P 500’s for the first time in years.
- Nvidia' trading volume hit 194.1 million shares, roughly 9.9% above its three‑month average of 176.6 million.
- Nvidia' forward P/E based on projected 2026 earnings dropped to about 20, its lowest in five years and lower than the S&P 500’s ratio.
- AMD fell to $201.99, down 0.87%, while Intel slipped to $43.13, down 2.20%, as the sector reassessed AI hardware valuations.
- S&P 500 fell 1.57% to 6,376 and the Nasdaq Composite lost 2.15% to 20,948, reflecting broader market weakness.
- Nvidia announced new products at its GTC 2026 event, keeping AI growth prospects strong despite supply‑chain risks.
Why it matters: Investors gain a potential entry point as Nvidia’s forward P/E drops to about 20, below the S&P 500’s ratio, while the chip sector faces pressure, reflected in AMD and Intel declines, and supply‑chain concerns persist, making the market’s risk‑reward calculus shift toward value.
