Nvidia sheds nearly $1.4 trillion as stock drops up to 25% from its record

Nvidia's stock has slid from its October 6 record close of roughly $239.24 into a $180 to $200 range by November 5, a pullback of about 11% to 25% depending on where in that band you measure. The decline erased close to $1.4 trillion in market value and dragged shares beneath their 200-day moving average.

The valuation math has gotten strange. Nvidia's forward price-to-earnings ratio has compressed to roughly 12.9x to 13x, while the S&P 500 sits around 18.7x to 20x over the same stretch. Walmart, a retailer known for low prices rather than triple-digit growth, was cited at 36x to 40x — meaning the market is paying about three times as much for a dollar of Walmart's future earnings as for a dollar of Nvidia's.

Two worries drove the late-October and early-November selloff. The first is the soaring cost of AI infrastructure; the second is the prospect of regulatory pushback over how much power data centers consume. For a company whose biggest business is selling hardware into those data centers, both land close to home.

The underlying business, at least in the latest numbers, hasn't blinked. Nvidia posted $96.2 billion in revenue for fiscal Q2 2027, up 106% year over year, with data-center revenue climbing 117% and adjusted earnings per share of $2.22 marking a 120% increase. The consensus rating heading into the next report remains Strong Buy.

November 17 is the next real test, when Nvidia reports earnings. Investors will be watching whether data-center growth holds anywhere near the prior quarter's 117% pace, and listening for any commentary on customer spending plans and the power constraints that helped spark the drop.

Tokenized exposure to the chipmaker is trading in the same neighborhood. An Ondo-issued product on BNB Chain was priced at $180.18, a second Ondo product on Ethereum at $183.70, and a backed token on Solana at $183.68, according to Crypto Briefing.