Stock Market Today, March 27: Nvidia Slides as Valuation Drops Below S&P 500 on Forward Earnings

Core Viewpoint - Nvidia's stock valuation has dipped below the S&P 500's forward price-to-earnings (P/E) ratio for the first time in years, raising concerns among investors despite strong AI growth prospects and new product optimism [1][4]. Stock Performance - Nvidia closed at $167.46, down 2.21%, with trading volume reaching 194.1 million shares, which is 9.9% above its three-month average of 176.6 million shares [1][2]. - The S&P 500 fell 1.57% to 6,376, while the Nasdaq Composite lost 2.15% to finish at 20,948, indicating a broader market decline [3]. Valuation Insights - Nvidia's P/E ratio, based on expected 2026 earnings, has dropped to about 20, near its lowest level in five years and below that of the S&P 500 index [4]. - Despite a 1,200% increase in stock price over the last five years, some investors are now considering Nvidia as "cheap" due to its current valuation [4]. Market Context - Ongoing geopolitical supply-chain risks are a concern for investors, but there is a suggestion that now may be a good time to buy Nvidia stock [5].