Nvidia Valuation Falls Back to Pre-AI Boom Levels as Stock Drops 18x P/E

According to UAnalyze, Nvidia (NVDA-US) stock has retreated recently, with the company's market value declining approximately $1 trillion since hitting a record high on May 14. Analysts note the correction reflects market rotation toward memory chips and other semiconductor companies rather than fundamental deterioration. Nvidia's current valuation stands at 18x forward earnings, below the S&P 500's 20x and Nasdaq-100's 23x, marking a pullback to pre-AI boom levels.

Despite stock underperformance in 2026, with gains of only 5.6% year-to-date versus 9.6% for the S&P 500 and 16% for the Nasdaq-100, analyst expectations remain bullish. Earnings forecasts have been raised in recent months, with consensus projections estimating fiscal 2027 revenue of $393 billion and net income of $228 billion, representing 82% and 90% year-over-year growth respectively. Analysts maintain a buy rating with a median price target of $302, implying over 50% upside.