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Nvidia's Forward P/E Slips to 18, Below Hershey

July 8, 2026 at 06:41 EDT

Infra & Chips
Finance

Nvidia (NVDA), the stock that powered the AI rally, has kept sliding to the point where its forward price-to-earnings ratio has fallen to 18 times next-year estimated profit, making it cheaper than roughly half of the S&P 500—and less expensive than candy maker Hershey (HSY), Bloomberg noted in its July 8, 2026 newsletter.

July 8, 2026 · Markets

The World's Most Valuable Company Is Now Cheaper Than Hershey

After a slide from its mid-2025 peak, Nvidia's forward P/E has compressed to 18× — below the S&P 500 average, and less expensive than steady consumer names like Hershey and Coca-Cola.

$196.93

Share price, July 7 close

18×

Forward P/E, vs S&P 500 avg ~20×

90%+

Data-center GPU market share

Forward P/E — cheaper than the market

Lower multiple = a cheaper stock relative to next-year earnings

18×

Nvidia

~20×

S&P 500 avg

~30×

Nvidia trailing

On next-year estimates Nvidia trades below the market — and below consumer staples like Hershey and Coca-Cola — even as its trailing multiple sits near 30×.

The Bull Case

Framed as a "value play" — cheaper than the S&P 500
Plan to return half of free cash flow to shareholders
Inexpensive versus its own historical multiple

The Bear Case

Possibly "cheap for a reason" if growth disappoints
Reliance on hyperscaler capex guidance
"Circular" AI spending: its investees are also its customers

The Circular Question

Nvidia invests in AI firms → Those firms buy Nvidia GPUs → Revenue feeds new investment

Continued AI capital spending remains the core premise behind results. The open question: will earnings growth catch up to expectations, and will AI demand prove durable?

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