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Nvidia Now Trades at a Lower Forward P/E Than the S&P 500

The unusual discount points to a broader tech revaluation driven by macro pressures.

Overview

  • Goldman's trading desk said Nvidia now trades at about 19.7 times expected earnings, below the S&P 500 at roughly 20.3 times, for the first time in more than 13 years.
  • Nvidia reported $68.1 billion in quarterly revenue with $62.3 billion from data centers and guided to about $78 billion next quarter, as CEO Jensen Huang cited at least $1 trillion in chip orders through 2027.
  • The stock has slipped back into a bear market after breaking support near $170 and is now testing levels close to $140.
  • Rising interest rates, tensions linked to Iran and U.S. limits on China chip sales have pressured high-growth tech and helped compress Nvidia’s valuation.
  • Nvidia reports next on May 27, and investors will watch data-center demand and guidance for signs the discount to the index could close.