Market Cap Update

NVDA Market Cap and PE Ratio Update

Market Cap Update

NVIDIA Corporation's (NVDA) market capitalization has experienced a notable decline, dropping from a peak of over $115 billion in November 2021 to approximately $335 billion as of May 7, 2024. This represents a decrease of around $80 billion in market value.

PE Ratio Movement

In addition to the market cap decline, NVDA's price-to-earnings (PE) ratio has also undergone significant changes. The PE ratio, which measures a company's valuation relative to its earnings, has dropped from over 100 in 2021 to around 37.7 as of May 7, 2024. This indicates that investors are now willing to pay a lower multiple for each dollar of earnings generated by NVIDIA.

The decline in both market cap and PE ratio is likely due to a combination of factors, including macroeconomic headwinds, concerns about the global chip market, and potential competition from emerging players in the industry.