Nvda stock price has fallen 16% from its May 14 peak, wiping out roughly $1 trillion in market value in less than two months. Nvidia Corp. is now trading at 18 times earnings projected over the next 12 months, its cheapest level since early 2019.
That leaves the stock below the S&P 500 Index, which was priced above 20 times forward earnings, and well under the Nasdaq 100 Index at almost 23 times. Shareholders who rode the rally now face a valuation reset even as the company is still expected to deliver the fourth-fastest revenue growth in the S&P 500 this year.
Randy Hare Sees A Climb
18 times forward earnings has drawn a bullish read from Randy Hare, director of equity research at Huntington Bank. He said Nvidia looks undervalued at current levels and expects the shares to resume climbing, adding, "Stocks follow earnings" and "It’s a consistent performer."
5.6% is all Nvidia shares have gained in 2026, far behind the S&P 500’s 9.6% advance and the Nasdaq 100’s 16% rise. The split matters because the stock is no longer moving with the broader market even though its business remains central to AI spending.
Micron Gains, Nvidia Loses
74% is how much the Philadelphia Stock Exchange Semiconductor Index has jumped in 2026, while Micron Technology Inc. is up 229% after soaring 239% in 2025. Michael Bailey, director of research at Fulton Breakefield Broenniman, said, "Sentiment has moved on" and added, "You’re seeing these companies where expectations were very low — the Microns of the world — stealing the spotlight."
30 chip stocks have not treated Nvidia kindly either: it is the third-worst performer in that group, and its correlation to the chip index sank to the lowest since 2014 last month. Eric Clark, chief investment officer at Accuvest Global Advisors, said, "The stock ran really far, really fast for a period of time" and "It was a very crowded trade." He added, "And then there were other things that the market wanted to also get exposure to."
About half of the stocks in the S&P 500 Index now trade at a cheaper valuation than Nvidia, including Hershey Co. and Dominion Energy Inc. That leaves Wall Street with a straightforward split: the stock is cheaper, but the rotation within AI has already pulled money toward other semiconductor names, so the next move will depend on whether earnings growth keeps catching up to the price reset.
