Nvidia shares fall up to 25% from record, erasing $1.4 trillion in market value

The AI chip giant's valuation has compressed after a sharp selloff, even as its latest quarter showed triple-digit revenue growth Nvidia, the company that sells the picks and shovels of the AI gold rush, is now priced like a sleepy utility. Its forward price-to-earnings ratio has dropped to approximately 12.9x to 13x after a steep market selloff. That puts the chipmaker below the S&P 500 as a whole. It also puts it well below Walmart, a retailer best known for low prices, not for growing revenue at triple-digit rates. How Nvidia got this cheap A forward P/E is a simple idea. It tells you how many dollars investors pay today for each dollar a company is expected to earn over the next year. By early November 2026, Nvidia’s tag read roughly 13. The S&P 500’s forward multiple sat around 18.7x to 20x over the same stretch. Walmart’s forward P/E was cited at between 36x and 40x in market discussions. So the market is currently willing to pay about three times as much for a dollar of Walmart’s future earnings as for a dollar of Nvidia’s. The drop came fast. Nvidia hit a record close of approximately $239.24 on October 6, 2026. By November 5, 2026, shares had slid into the $180 to ...