Nvidia Is Cheapest It’s Been Since 2019, Meta Tests New ‘Super’ Glasses

**Zaid Admani** (0:00)
Public.com presents The Rundown, your daily market update in 10 minutes. My name is Zaid Admani, and today is Thursday, July 9th. In today's episode, we'll break down why Nvidia stock has lost nearly a trillion dollars in value. We'll also recap Pepsi's earnings and what it says about the American consumer. Then stick around to the end of the show to hear about Meta's new prototype AI glasses that sound incredibly creepy. We got a great show for you today.
Let's go.
Well guys, markets had a messy day on Wednesday, but honestly, it could have been a lot worse considering the headlines. Overall, the S&P 500 fell 0.3% with nearly 400 companies in the index finishing in the red. But there was a rally in the afternoon from chip stocks which helped mitigate some of the damage and it actually helped push the NASDAQ in the green up 0.2%. The big story yesterday was of course the escalation in Iran. President Trump said the ceasefire with Iran is over and the two sides are now trading strikes. So the fighting is back on and that sent oil prices higher yesterday. Brent crude jumped 5% to $78 a barrel, its biggest one day jump in more than two months. So just as we thought the war with Iran was behind us and that oil prices were gonna get some relief, the market is getting hit with uncertainty again. And remember, higher oil prices means more inflation pressure, which could force the Federal Reserve to hike interest rates this year. In fact, according to the Fed's June meeting minutes, which came out yesterday morning, the Fed is split down the middle on what to do with rates this year. Nine of the 18 Fed officials are now penciling in at least one rate hike this year. Back in March, that number was zero. Higher oil prices obviously play a role here, but the Fed is also worried about the AI build out as a possible source of persistent inflation. Now all the money that these big tech companies are spending on building these AI data centers is pushing up the prices of electricity, copper, cooling equipment, construction labor, and of course tech products. Now we're gonna get more inflation data next week when the June CPI report comes out. Not to mention next week also kicks off Q2 earning season. So the next few weeks are gonna be huge and it could set the tone for the market for Q3. We're gonna be staying on top of all of it. So if you're new here, definitely get subscribed to the podcast and tune in every day to stay in the loop.
Let's run through some headlines. Starting with Nvidia. Nvidia has quietly lost about a trillion dollars in market cap in the last two months. The stock is down about 15% from its all time high in mid May. It's currently trading at its cheapest valuation since early 2019 According to Bloomberg, Nvidia is now trading around 18 times forward earnings. Now a quick refresher on what that means. A stock's forward PE tells you how much you're paying for each dollar of next year's expected profits. And by that measure, Nvidia is cheaper than the overall S&P 500, which is pretty wild to me. Nvidia is supposed to be the most important company of the AI era, and it's currently trading at a discount to the average stock in the S&P. I mean, freaking Hershey's has a higher forward PE than Nvidia right now. Now, the reason this could be happening is that investors kind of got bored with Nvidia and started putting money in memory and storage stocks like Micron and Sandix, which have been ripping recently. The SOX semiconductor index is up 74% this year, while Nvidia is up just 5%. There's also concerns that custom chips from Google, Amazon and other hyperscalers could eat into Nvidia's market share over time. And there's also been reports that Nvidia's next gen server rack are running a year behind schedule, but Nvidia has disputed those reports. But I gotta say though, Nvidia still dominates the AI space. Bloomberg says that Nvidia had 97% of the server GPU market as of the end of 2025 You know, Nvidia still makes proprietary GPUs that every big AI lab still needs. In fact, SpaceX announced that their latest model, Grok 4.5, was trained on tens of thousands of Nvidia's newest GB300 chips. Memory chips, on the other hand, are a commodity and could go bust at any time once the supply catches up to demand. So, you know, if memory stocks see some weakness in the second half of the year, then some of that money could flow back into Nvidia. And Wall Street is still bullish in the company with the average price target of around $300, which implies a 50% upside from current levels. Option traders are also loading up on call options. So I'm gonna keep my eye on Nvidia in the second half of the year.