EL7.AI
StocksMediumUpdated×3•Originally published 25 March 2026•Updated 27 March 2026•
1 min read

Nvidia Shares Hit Lowest Level Since December as Valuation Drops Below Market Average

Key Facts

1Nvidia shares rose approximately 3% despite Arm Holdings announcing its entry into the AI processor manufacturing market.
2Arm unveiled its AGI CPU, marking the company's first fully internally developed AI chip.
3Arm announced that major firms including Meta and OpenAI will be among the initial customers for its new processors.
4Arm projects its CPU business could generate $15 billion in annual revenue by 2031.

Nvidia shares experienced a significant pullback, falling 1.8% on Friday and 4.2% on Thursday to reach their lowest closing level since mid-December. This price correction follows a period of volatility sparked by Arm Holdings' entry into the AI processor market with its new AGI CPU. In a historic shift, Nvidia's forward P/E ratio has dropped to 19.7x, falling below the market average for the first time in a decade. While Arm has secured major clients like Meta and OpenAI for its in-house chips, investor focus has pivoted toward Nvidia's sudden valuation discount. Previous analyst projections suggested a 150% surge by 2028, but current technical pressure is challenging that bullish momentum. Market participants are now weighing Nvidia's long-term evolution into a comprehensive computing platform against immediate competitive threats and shifting sentiment in the semiconductor sector.