NVDA Stock Hits 7-Year Low Valuation After $1 Trillion Loss—July 10

Nvidia (NVDA) has shed $1 trillion in market value in less than two months, pushing its valuation to levels not seen since before the AI boom. The stock now trades at 18 times forward earnings—cheaper than the S&P 500’s 20x multiple—despite the company holding 97% of the server GPU market and reporting record revenue. Investors have rotated capital toward memory chip makers like Micron, leaving the AI infrastructure leader at a seven-year low valuation.

Why Nvidia lost $1 trillion in two months

Nvidia peaked at $235.47 on May 14, when its market cap hit $5.73 trillion. By June 26, the stock had fallen 16%, erasing $1.07 trillion in value. Bank of America analyst Vivek Arya cited three pressures: gross margin pressure from higher memory costs, custom ASIC competition, and crowded investor ownership. Investors rotated into memory chip names like Sandisk and Micron, which have outperformed Nvidia in 2026.

Valuation now cheaper than 2019

Nvidia trades at 18 times forward earnings, below the S&P 500’s 21x and the Nasdaq 100’s 23x multiples. This is the stock’s cheapest valuation since early 2019, when Nvidia was still viewed as a play on video game chips and bitcoin mining. Despite the decline, Nvidia remains the world’s largest company by market cap at $4.94 trillion, ahead of Alphabet and Apple.

Wall Street sees a buying opportunity

About 95% of sell-side analysts rate Nvidia a Buy or Strong Buy, with zero downgrades this year. StockBrokers.com strategist Jessica Inskip called the setup “a great buying opportunity” on Yahoo Finance, citing Nvidia’s role in the AI infrastructure build-out. Bank of America’s Arya said the market is “implicitly discounting an unjustified 30-35% headwind” to 2027-2028 earnings, rating the stock an enhanced Buy at current levels.

Meyka grade and technical signals

Meyka rates NVDA a B+ with a 12-month price target of $244.18, implying 21% upside from current levels. The stock’s RSI sits at 50.92, near neutral, while the Stochastic oscillator at 37.43 suggests potential oversold conditions. Bollinger Bands place the stock near the middle band at $201.69, with support at $190.20. Machine learning forecasts predict a modest 1.89% decline to $193.14 by July 31, though longer-term outlooks remain bullish.

Final Thoughts

Nvidia’s 16% slide to a seven-year-low valuation reflects sector rotation, not deteriorating fundamentals. With 95% of analysts bullish, Meyka grading it B+, and the stock trading below the broader market multiple, the risk-reward appears skewed toward buyers at current levels.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.