Nvidia now trades at 13x forward earnings after crash, a third of Walmart's

Wall Street's rough day left Nvidia looking weirdly cheap on paper. After today's crash, the AI chip giant trades at a forward price-to-earnings ratio of roughly 13x, according to the Kobeissi Letter. That's the kind of multiple usually reserved for slow-growth industrials, not the company at the center of the AI boom.

The comparison gets wilder. The S&P 500's forward P/E sits around 20x, putting Nvidia about 7 turns below the broad market. And Walmart, a retailer, is trading near 43x forward earnings — more than three times Nvidia's multiple, per the same post.

So the punchline writes itself: the name leading the AI buildout is now one of the cheapest stocks in the market, at least by this measure. Kobeissi called it 'truly incredible,' and it's easy to see why the number turned heads.

Worth keeping in mind what a forward P/E actually is. It divides the share price by analysts' expected earnings over the next year, so it moves both when the stock falls and when profit forecasts change. A single session can slash the multiple fast.

Whether 13x holds depends on where the selloff goes next and whether earnings estimates stay put. For now, the crash handed Nvidia a valuation label it hasn't worn in a while.