LIVE MARKETS-Nvidia's earnings valuation sinks to lowest in a year; nearly at pre-ChatGPT levels

Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com

NVIDIA'S EARNINGS VALUATION SINKS TO LOWEST IN A YEAR; NEARLY AT PRE-CHATGPT LEVELS

Do you believe Wall Street is in an AI bubble? If you're confident the AI trade remains intact, then take a look at Nvidia NVDA.O, now trading at its lowest price-to-earnings valuation in almost a year.

The world's most valuable company has lost 16% of its value since its record high in October 2025, evaporating over $800 billion in value. The stock fell almost 4% on Thursday as worries about the U.S. and Israeli war on Iran sent the U.S. stock market broadly lower.

Following its steep recent drop, the AI heavyweight is trading at about 20 times expected future earnings, according to LSEG data. That's Nvidia's lowest forward PE since April 2025, when U.S. President Donald Trump's Liberation Day tariff announcements sent stock markets into a tailspin.

Worries about slower-than-expected Federal Reserve interest-rate cuts and damage to the global economy from the Iran conflict have sent shares of Nvidia and the rest of the global stock market sharply lower in recent weeks. Investors also worry that massive spending by Nvidia's biggest customers, including Microsoft MSFT.O, Amazon.com AMZN.O and Alphabet GOOGL.O, may be taking too long to pay off in higher revenue and profits.

If Nvidia's stock continues its decline, and if analysts hold their earnings estimates steady, the chipmaker's forward PE will reach its lowest since 2019, over three years before the launch of OpenAI's ChatGPT that kicked off the rally in AI stocks that has dominated Wall Street since then.

(Noel Randewich)

*****

EARLIER ON LIVE MARKETS:

OIL SHOCK WILL SOFTEN, NOT SHATTER, THE US JOB MARKET CLICK HERE

INVESTORS SHOULD CONSIDER BIG BANKS AND COMPANIES IN AI FOOD CHAIN - HIGHTOWER'S LINK CLICK HERE

WALL STREET VETERAN SAYS OIL-LED INFLATION SCARE LIKELY TO FADE LIKE LAST YEAR'S TARIFF FEARS CLICK HERE

JOBLESS CLAIMS: LOW-HIRE, LOW-FIRE MODE? CLICK HERE

WALL STREET ON THE DEFENSIVE AGAIN AS CAUTIOUS TONE PERSISTS CLICK HERE

VOLATILITY ON WATCH AS NASDAQ BULLS AND BEARS BATTLE AT KEY LEVELS CLICK HERE

EUROPEAN OILS: GOLDMAN TIPS TRADERS AND GAS AS EARNINGS LOOM CLICK HERE

'ANYTHING BUT AUTOS': CARMAKERS SEEK NEW NARRATIVE BEYOND SECTOR GLOOM CLICK HERE

A BIT OF CALM AFTER THE STORM… OR BEFORE THE NEXT ONE? CLICK HERE

GOLD SELLOFF CREATES "REASONABLE" ENTRY POINT - BARCLAYS CLICK HERE

STOXX 600 DROPS 1%, OIL RISES AS MARKETS WEIGH UP MIDDLE EAST UPDATES CLICK HERE

EUROPE BEFORE THE BELL: OIL UP, STOCK FUTURES DOWN CLICK HERE

HOPE AND HORMUZ CLICK HERE