Stock Market Today, March 27: Nvidia Slides as Valuation Drops Below S&P 500 on Forward Earnings

By Howard Smith – Mar 27, 2026 at 5:02PM ESTExpandNASDAQ: NVDANvidiaToday's Change(-2.13%) $-3.65Current Price$167.59Key Data PointsMarket Cap$4.2TDay's Range$167.01 - $170.9652wk Range$86.62 - $212.19Volume6.9MAvg Vol177MGross Margin71.07%Dividend Yield0.02%Nvidia (NVDA 2.13%), leading GPU and AI computing platforms developer, closed Friday’s session at $167.46, down 2.21%. The stock moved as investors weighed reports of Nvidia valuation dipping below the S&P 500’s forward price-to-earnings (P/E) ratio for the first time in years. That comes as investors also weigh recent new product optimism and ongoing geopolitical supply-chain risks. They are watching how quickly AI demand can translate into renewed share-price momentum.Trading volume reached 194.1 million shares, coming in nearly 9.9% above its three-month average of 176.6 million shares. Nvidia IPO'd in 1999 and has grown 408,171% since going public.How the markets moved todayThe S&P 500 (^GSPC 1.67%) fell 1.57% to 6,376, while the Nasdaq Composite (^IXIC 2.15%) lost 2.15% to finish at 20,948. Among semiconductors, industry rivals Advanced Micro Devices (AMD 0.79%) closed at $201.99, down 0.87%, and Intel (INTC 2.11%) finished at $43.13, slipping 2.20% as investors reassessed AI hardware valuations.What this means for investorsInvestors may have a difficult time accepting a stock that has rocketed 1,200% higher over the last five years could be considered “cheap.” Yet that’s what industry followers are acknowledging now that Nvidia’s P/E, based on expected 2026 earnings, has dropped to about 20. That’s near its lowest level in five years and is below that of the S&P 500 index. The company’s AI growth prospects still remain strong, too, after new products were announced at its recent GTC 2026 event. Supply chain risks remain, but investors who have been monitoring Nvidia’s stock price should consider buying now.Read NextMar 27, 2026 •By Keithen Drury1 No-Brainer Artificial Intelligence (AI) Stock That Will Skyrocket By the End of 2026Mar 27, 2026 •By Adam SpataccoIf I Had $10,000 to Invest in Artificial Intelligence (AI) Right Now, I'd Split It Between These 3 StocksMar 27, 2026 •By Geoffrey Seiler8 Stocks I'd Buy if I Were Starting a Tech Portfolio From Scratch TodayMar 26, 2026 •By Daniel SparksNvidia Stock Has Gone Nowhere for 6 Months.

What Will It Take for Shares to Go Higher?Mar 26, 2026 •By Leo Sun3 Reasons Broadcom Could Be a Better AI Play Than NvidiaMar 26, 2026 •By David Jagielski, CPAThe Biggest Surprise About Nvidia's AI Conference: It Didn't Give the Stock a BoostAbout the AuthorHoward Smith is a contributing Motley Fool stock market analyst covering technology and industrial stocks. Prior to The Motley Fool, Howard spent nearly 30 years supervising quality and operations in the steel industry, mostly with leading steel company Nucor. He holds a bachelor’s degree in metallurgical engineering from Lafayette College and a master’s degree in environmental engineering from Johns Hopkins University.TMFBuilt2LastStocks MentionedNvidiaNASDAQ: NVDA$167.59(-2.13%)-$3.66Advanced Micro DevicesNASDAQ: AMD$202.16(-0.79%)-$1.61IntelNASDAQ: INTC$43.13(-2.20%)-$0.97*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.