Nvidia (NVDA) Stock Is the Cheapest It’s Been in 11 Years - Is It a Buy?
TLDR
- Nvidia fell 5% Monday, losing its position as the world’s most valuable company to Apple.
- The forward price-to-earnings ratio dropped to 18.16 — the lowest since April 2015.
- Reports emerged that Nvidia is in talks with OpenAI over a $250 billion data-center financing guarantee in Ohio.
- Separate reports cited talks around financing up to $350 billion in OpenAI chip purchases.
- The selloff spread globally, hitting Asian and European chip stocks hard.
Nvidia’s forward P/E ratio closed at 18.16 on Monday — the lowest valuation reading since April 6, 2015, according to Dow Jones Market Data.
The stock dropped 5% on the day, erasing Nvidia’s title as the world’s most valuable company. Apple reclaimed the top spot.
As of premarket trading Tuesday, NVDA was down a further 0.8%, suggesting no immediate bounce was on the way.
The drop came on a rough day for semiconductors broadly. A report that a Chinese company has begun mass producing key chip-making equipment rattled the sector.
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