Nvidia’s forward P/E ratio closed at 18.16 on Monday — the lowest valuation reading since April 6, 2015, according to Dow Jones Market Data.
The stock dropped 5% on the day, erasing Nvidia’s title as the world’s most valuable company. Apple reclaimed the top spot.
As of premarket trading Tuesday, NVDA was down a further 0.8%, suggesting no immediate bounce was on the way.
The drop came on a rough day for semiconductors broadly. A report that a Chinese company has begun mass producing key chip-making equipment rattled the sector.
ASML fell 8.5% on the back of that news. The Dutch firm is a critical supplier in the global chip supply chain.
Chinese memory producer CXMT also made a strong market debut, adding to concerns that established chipmakers may face stiffer competition ahead.
The selloff wasn’t contained to Europe. South Korea’s KOSPI dropped nearly 10% and triggered a circuit breaker. Japan’s Nikkei fell 4.4%.
Beyond the China headlines, a more specific concern hit Nvidia directly. The Wall Street Journal reported that Nvidia is in talks with OpenAI over a $250 billion guarantee to help finance a data-center project in Ohio.
Separate reports indicated Nvidia may also be involved in financing up to $350 billion in OpenAI chip purchases.
The numbers raised a straightforward question among investors: is AI spending becoming too dependent on chip suppliers financing their own customers?
That dynamic — where the seller helps fund the buyer — introduces a layer of financial risk that markets are still trying to price in.
The timing of the selloff puts extra weight on upcoming Big Tech earnings. Apple, Meta, Microsoft, and Amazon are all set to report this week.
Their capital expenditure guidance will be closely watched. Any pullback in AI infrastructure spending plans could add further pressure on Nvidia.
On the flip side, Nvidia’s valuation is now at a level that hadn’t been seen in over a decade. For long-term investors, that’s a number worth paying attention to.
Nvidia’s stock has gained just 5% in 2026, lagging the broader semiconductor sector for the year.
The next major catalysts will be hyperscaler earnings, any updates on Nvidia’s financing exposure to OpenAI, and further developments in China’s domestic chip equipment industry.
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