By Adam Clark
Nvidia stock is going through a rough period but it could be establishing a floor on an increasingly cheap valuation.
The shares, up 0.3% in premarket trading, tumbled 4% on Thursday to their lowest closing price since mid-December. The stock is down 8.2% this year, heading into Friday's trading.
Technology stocks dependent on the artificial-intelligence boom are out of favor with investors. Nvidia now trades at a forward price-to-earnings ratio of 19.7 times according to FactSet, meaning it is at a discount to the average 20.3 times for the S&P 500 index, despite much higher growth expectations.
However, that could establish a floor for the stock. Nvidia remains the most popular individual stock purchase according to J.P. Morgan's report on retail trading for the week ending Wednesday, March 25. And Barron's Roundtable investing professionals agree, giving unanimously positive opinions on the stock.
Among other chip makers, Broadcom was down 0.2% in premarket trading and Advanced Micro Devices was down 0.3%.
Write to Adam Clark at adam.clark@barrons.com
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(END) Dow Jones Newswires
March 27, 2026 06:11 ET (10:11 GMT)
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