Nvidia Stock Falls to AI-Era Low
Nvidia stock fell to AI-era lows amid a pullback; $35.6B Q4 data-center revenue and a $1T hyperscaler backlog support traders before May 20 earnings.
KEY TAKEAWAYS
- Valuation compressed to AI-era lows with a trailing P/E near 36.6.
- Q4 FY2026 data-center revenue was $35.6 billion, up 93% year-over-year.
- Company carries about a $1 trillion hyperscaler order backlog; next earnings May 20, 2026.
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Nvidia (NVDA) stock declined over the past three days, pushing its valuation to the lowest levels since the AI boom began, even as recent company metrics show continued scale and strong demand from hyperscalers.
Valuation Declines Amid Market Pressure
Shares traded at $179.45 on March 25, 2026, during a risk-on rally but fell the next day as broader market weakness and rising oil prices weighed on risk assets. By 17:02 ET on March 27, reports noted Nvidia’s valuation had dropped below the S&P 500’s forward earnings. The stock’s trailing price-to-earnings ratio stood at 36.6.
Strong Revenue Growth and Backlog Support Outlook
Nvidia’s data center revenue in the fourth quarter of fiscal 2026 reached $35.6 billion, up 93% year-over-year. Full-year revenue totaled $130.5 billion, a 114% increase from $61 billion in fiscal 2025, producing trailing 12-month revenue of $215.9 billion.
The company maintains an order backlog near $1 trillion from hyperscalers including Microsoft, Google, Meta, and Amazon. CEO Jensen Huang has projected the revenue opportunity for Nvidia’s artificial intelligence chips could reach at least $1 trillion through 2027, up from a previous $500 billion target. Analysts have raised longer-term revenue estimates to $369.4 billion for fiscal 2027, $480.0 billion for 2028, and $757.6 billion by 2031.
Nvidia will report fourth-quarter fiscal 2026 results on May 20, 2026. Consensus forecasts call for $43.5 billion in revenue, about a 65% year-over-year increase. Investors will focus on guidance and production-timeline updates to assess whether the recent valuation reset reflects a durable shift or a short-term pullback.
