Nvidia’s stock valuation falls below S&P 500 and Nasdaq 100 averages after a $1 trillion market cap decline since mid-May.
Nvidia’s stock valuation has retreated to levels last seen before the artificial intelligence boom, trading at 18 times forward earnings. The decline follows a 16% drop since mid-May, erasing approximately $1 trillion in market capitalization.
The chipmaker now trades below broader market multiples, with the S&P 500 at over 20 times and the Nasdaq 100 near 23 times forward earnings. Despite this, analysts continue to raise earnings forecasts, citing Nvidia’s dominant 97% share of the server GPU market at the end of 2025.
Investors have shifted focus to other semiconductor stocks, including Micron, AMD, and Intel, which collectively added roughly $2 trillion in market cap during the second quarter. Nvidia’s 5.6% gain in 2026 lags the S&P 500’s 9.6% rise.