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

Nvidia (NVDA 2.17%), leading GPU and AI computing platforms developer, closed Friday’s session at $167.46, down 2.21%. The stock moved as investors weighed reports of Nvidia valuation dipping below the S&P 500’s forward price-to-earnings (P/E) ratio for the first time in years. That comes as investors also weigh recent new product optimism and ongoing geopolitical supply-chain risks. They are watching how quickly AI demand can translate into renewed share-price momentum.
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 (^GSPC 1.67%) fell 1.57% to 6,376, while the Nasdaq Composite (^IXIC 2.15%) lost 2.15% to finish at 20,948. Among semiconductors, industry rivals Advanced Micro Devices (AMD 0.79%) closed at $201.99, down 0.87%, and Intel (INTC 2.20%) 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,…