Stock Market Today, March 27: Nvidia Slides as Valuation Drops Below S&P 500 on Forward Earnings
Trading volume reached 194.1 million shares, coming in nearly 9.9% above its three-month average of 176.6 million shares. Nvidia IPO’d in 1999 and has grown 408,171% since going public.
How the markets moved today
The S&P 500 (SNPINDEX:^GSPC) fell 1.57% to 6,376, while the Nasdaq Composite (NASDAQINDEX:^IXIC) lost 2.15% to finish at 20,948. Among semiconductors, industry rivals Advanced Micro Devices (NASDAQ:AMD) closed at $201.99, down 0.87%, and Intel (NASDAQ:INTC) finished at $43.13, slipping 2.20% as investors reassessed AI hardware valuations.
What this means for investors
Investors may have a difficult time accepting a stock that has rocketed 1,200% higher over the last five years could be considered “cheap.” Yet that’s what industry followers are acknowledging now that Nvidia’s P/E, based on expected 2026 earnings, has dropped to about 20.
That’s near its lowest level in five years and is below that of the S&P 500 index. The company’s AI growth prospects still remain strong, too, after new products were announced at its recent GTC 2026 event.
Supply chain risks remain, but investors who have been monitoring Nvidia’s stock price should consider buying now.
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Howard Smith has positions in Intel and Nvidia and has the following options: short April 2026 $180 calls on Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Intel, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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