Nvidia's slide sends valuation back to pre-AI boom levels

Nvidia's forward earnings multiple has compressed to about 18 times, its cheapest level since early 2019, as the stock now trades cheaper than the S&P 500 (above 20x) and the Nasdaq 100 (nearly 23x). The valuation reset comes even as analysts continue to raise profit estimates, reflecting rotation out of the AI bellwether into memory, storage, and laggard chip names such as Micron, AMD, and Intel. Despite ranking fourth in expected S&P 500 revenue growth this year, Nvidia is now cheaper than roughly half the index's constituents, prompting some analysts to view current levels as undervalued.