Nvidia's market cap has evaporated $1 trillion in less than two months, with valuations falling back to levels before the AI boom.

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Jinse Finance reports that on July 8, after seeing its market value evaporate by about $1 trillion in less than two months, Nvidia's stock has fallen to its cheapest level since the artificial intelligence boom ignited and drove the stock to surge. The chipmaker's graphics processing units (GPUs) still dominate the AI data center market. However, its stock has dropped 16% since hitting an all-time high on May 14, as investors adjust their AI trading strategies by selling Nvidia and rotating into other semiconductor manufacturers, especially those in the memory market. Data shows that the sell-off has brought Nvidia's price-to-earnings ratio based on expected earnings over the next 12 months to 18 times. The last time it reached such a cheap level was in early 2019. A more intuitive way to gauge the depth of its decline is through a comparison with benchmark indices: the S&P 500's forward P/E ratio is 20 times, while the Nasdaq 100's forward P/E ratio is nearly 23 times.
NVDA3.66%
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