NVIDIA P/E at 7 year low on West Asia tensions
NVIDIA's price-to-earnings (P/E) ratio just hit its lowest point in seven years, dropping 2.2% on Friday (March 27, 2026).
The company's price-to-earnings (P/E) ratio is also at a low not seen since 2019.
This slide is tied to global tensions, especially in West Asia, which are pushing up oil prices and inflation, making investors nervous about possible interest rate hikes.
NVIDIA market value drops $800 billion
NVIDIA's value has dropped by $800 billion and the stock is down nearly 20% since October, even though earnings are expected to grow over 70%.
Its P/E ratio of 19.6 is still below the S&P 500 average, and some investors and traders are cautious about how new AI tech could shake things up for NVIDIA.
At least one market strategist continues to recommend NVIDIA, so plenty of investors aren't giving up hope just yet.