Investors may be shifting their focus from tech to energy due to growing concerns about Big Tech’s massive investments in Artificial Intelligence (AI). As a result, Nvidia’s stock is trading at a lower price than Exxon Mobil’s. Despite Nvidia’s recent decline, its shares have still seen significant gains, increasing by 36% this year. In contrast, Exxon’s stock has risen more substantially, with a valuation of 18.3x earnings expectations for calendar 2027. The disparity widens when looking at longer-term valuations, with Exxon’s price-to-earnings ratio being higher than Nvidia’s in both 2027 and 2028.
Source: https://www.marketwatch.com/story/nvidias-stock-is-cheaper-than-exxons-are-investors-ditching-tech-for-energy-4d730390