Updated
Updated · Bloomberg · Jul 8
Nvidia Falls to 18x Forward Earnings, Cheaper Than Half the S&P 500
Updated
Updated · Bloomberg · Jul 8

Nvidia Falls to 18x Forward Earnings, Cheaper Than Half the S&P 500

2 articles · Updated · Bloomberg · Jul 8

Summary

  • 18 times projected next-year earnings now values Nvidia below roughly half of S&P 500 companies, despite its status as the world’s most valuable company.
  • Recent months of selling drove that compression, leaving the former market favorite trading at a lower multiple than Hershey.
  • The shift underscores how sharply sentiment has cooled around Nvidia: a stock once seen as one of the market’s hottest names now screens as relatively inexpensive on forward earnings.

Insights

With so few stocks propping up the market, is the AI boom masking an economy on the verge of collapse?
Nvidia is now cheaper than Hershey's. Is this a historic bargain or a sign its AI dominance is finally cracking?
As tech giants build their own AI chips, is Nvidia's market monopoly facing its first truly existential threat?