Chip Giant Nvidia's Stock Slump Fails to Remove Its Pricey Tag
- Even after falling 42%, the stock is priced at 35 times profit
- Company’s warning raised questions about outlook for demand
Nvidia headquarters in Santa Clara, California.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
Nvidia Corp. is one of the worst-performing semiconductor stocks this year, though the shares are hardly in the bargain basement bin.
After a 42% drop, and a more than $300 billion loss in market value, the maker of graphics processors is much cheaper than in the heady days of 2021 when its market capitalization was creeping toward $1 trillion. Yet it’s still priced at 35 times projected earnings, rich both historically and compared with peers, especially at a time when revenue growth is expected to slow.