Nvidia Stock Hits 5-Year Low on Price-Earnings Basis

Nvidia's stock has dropped to its cheapest price in five years on a price-to-earnings basis, trading at around 33.3 times trailing 12-month earnings.

Despite the drop, Nvidia continues to dominate AI development and sales are growing rapidly, up 85% year over year in Q1 of fiscal 2027.

The company's recent announcement of a new product leasing infrastructure for large clients has also contributed to its growth.

However, on a price-to-sales basis, Nvidia is fairly expensive, trading at around 21 times trailing 12-month sales.