Nvidia (NVDA) Stock Declines 20% From Record High as Institutions Sell $70B

TLDR

• Nvidia’s price-to-earnings (PE) ratio has dropped to approximately 19.6x, its lowest level since the start of 2019 — and now below the S&P 500’s PE of around 20
• The stock has fallen nearly 20% from its October 2025 record high of $207, erasing $800 billion from its market capitalization
• Institutional investors offloaded more than $70 billion in NVDA shares during Q4 2025, as 2,627 funds reduced their positions
• Even with the selloff, Nvidia reported 65% revenue growth in fiscal 2026, hitting $215.9 billion, while Data Center revenue rose 75%
• CEO Jensen Huang forecasted at least $1 trillion in total revenue from the Blackwell and Vera Rubin platforms by 2027

(SeaPRwire) –   Nvidia, the world’s most valuable company at roughly $4 trillion, is now trading at a price-to-earnings multiple not seen since prior to the start of the AI boom. Its forward PE has fallen to around 19.6x — beneath the S&P 500’s current PE of approximately 20.

NVIDIA Corporation, NVDA

That’s a notable reversal for a stock that has soared over 1,000% since ChatGPT launched in late 2022. For most of that period, investors gave Nvidia premium valuations specifically due to its rapid earnings growth.

The decline has been fueled by a combination of factors. Wider market anxieties over the U.S.-Israel conflict with Iran have driven oil prices up, sparking inflation worries and increasing the likelihood of interest rate increases. Nvidia has been swept up in that broader selling pressure.

There’s also a more specific concern weighing on the stock. Major cloud clients — including Microsoft, Alphabet, and Amazon — have been investing heavily in AI infrastructure, but investors are skeptical about how fast those investments will turn into revenue and profits. This uncertainty has shaken confidence in the AI sector more generally.

Institutions Pull Back

The data on institutional selling is difficult to overlook. During Q4 2025, 2,627 funds reduced their Nvidia holdings, selling about 440 million shares valued at approximately $73.5 billion at the time. Sellers included FMR LLC, JPMorgan Chase, T. Rowe Price, Northern Trust, and UBS Asset Management.

It wasn’t an entirely one-way trend, however. Around 3,090 institutions actually boosted their stakes during the same period, acquiring more than 648 million shares. Institutional ownership remains at 67.75% of the company.

The stock ended trading at $167.52 on March 27, significantly below its October 2025 high of $207.

Strong Fundamentals Haven’t Moved the Needle

What makes this situation atypical is that Nvidia’s business is performing strongly. Full-year fiscal 2026 revenue increased 65% to $215.9 billion. Q4 revenue jumped 73% year-over-year to $68.1 billion. Gross margins are at 75%. Analysts predict average earnings growth of over 70% for Nvidia this fiscal year, compared to 19% for the broader S&P 500.

Analysts at B. Riley Wealth, for example, continue to recommend the stock. Chief market strategist Art Hogan highlighted its valuation: “Trading at a multiple below the S&P 500, I think it’s a straightforward choice.”

But not everyone is as calm. Dennis Dick, a proprietary trader at Triple D Trading, noted the risk that AI hardware could face disruption in the future. “Everything’s using Nvidia chips now, but that doesn’t mean it will be that way in two or three years,” he stated.

At GTC 2026, CEO Jensen Huang forecasted at least $1 trillion in total revenue from the Blackwell and Vera Rubin AI platforms by 2027.