Nvidia’s forward P/E ratio falls to 22.6 as market cap declines by $800 billion since May, nearing 2019 valuation levels.
Nvidia’s market capitalization has plunged by $800 billion since its mid-May peak, reducing its valuation to levels last seen in 2019. The chipmaker, still worth nearly $5 trillion, now trades at a forward P/E of 22.6, a steep discount for the company.
The sell-off mirrors broader semiconductor sector weakness rather than fundamental concerns. Nvidia reported record revenue of $81.6 billion last quarter, an 85% year-over-year increase, with data center revenue surging 92%. The company also announced an $80 billion buyback program and a dividend hike.
Despite competition and margin pressures, Nvidia maintains a 97% share of the AI GPU market, signaling continued dominance in the sector.