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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.

2 months ago

Version History

9 additional sources confirmed this story

Version 32 months ago

What changed: Updated the headline and body to reflect the significant price drop to mid-December lows and the historic valuation shift where the forward P/E ratio fell below the market average for the first time in 10 years.

Version 22 months ago

What changed: Added a long-term price projection for Nvidia (150% surge by 2028) and highlighted the company's strategic evolution into a broader computing platform beyond GPUs.

Version 12 months ago

What changed: The update identifies CEO Rene Haas as the source of the $15 billion revenue projection and emphasizes the profit potential of the new AI chip division.

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.