Nvidia P/E Ratio Falls to Seven-Year Low as Middle East War and AI Profit Outlook Raise Concerns

Nvidia, the world’s largest company by market capitalization and a leading supplier of AI chips, has benefited directly as Microsoft, Alphabet and Amazon expand their AI infrastructure. Investors are now questioning how quickly that massive capital spending will translate into revenue and profits. The U.S.-Israeli war with Iran has also pushed up oil prices and heightened inflation and interest-rate risks, prompting markets to reassess the AI investment theme.

As of March 30, 2026, Nvidia traded at about 19.6 times estimated earnings for the next 12 months, its lowest multiple since early 2019 and below the S&P 500’s roughly 20 times. The shares have fallen nearly 20% from their October 2025 high, including a 2.2% drop on March 27, and are estimated to have lost about 10% in the first quarter. LSEG still forecasts earnings growth of more than 70% for Nvidia’s current fiscal year, well above the combined 19% projected for S&P 500 companies in 2026.