Overview
- Nvidia now trades at about 19.6 times expected earnings, the lowest since early 2019 and below the S&P 500’s roughly 20 times.
- The stock has fallen nearly 20% from its October 2025 record, erasing about $800 billion in market value and leaving the company near a $4 trillion market cap.
- Selling has tracked deepening concern that the Middle East conflict could lift oil prices, spur inflation, and keep interest rates higher, alongside doubts about how fast cloud spending on AI converts into vendor profits.
- Operating results remain strong, with fiscal 2026 revenue up 65% to $215.9 billion, fourth-quarter revenue up 73% to $68.1 billion, data-center sales up 75% to $62.3 billion, and gross margins at 75%.
- Institutional investors broadly rebalanced in Q4 2025, with thousands of funds trimming positions and selling roughly $70–$73.5 billion of shares even as many others increased stakes.