Exxon Mobil P/E Is Now Higher Than Nvidia — What’s Going On?
2026 has been rough for Big Tech stocks, with many of the major names pulling back significantly.
Why the Drop?
It’s largely driven by massive spending on AI infrastructure (data centers, chips, etc.), which is pressuring profits in the short term.
Investors are starting to question:
When will this actually pay off?
There’s growing skepticism about whether these investments will generate near-term returns, even if the long-term story remains strong.
Valuations Are Coming Down
The underperformance of the technology sector is starting to create attractive valuation opportunities for investors.
As Goldman Sachs strategist Peter Oppenheimer noted:
“The underperformance of the technology sector is also starting to generate attractive valuation opportunities for investors, as its valuation—relative to expected consensus growth—has fallen below that of the global aggregate market.”
Meanwhile… Energy Stocks Are Rising
Because of the current oil rally driven by tensions in the Middle East, oil company P/E ratios have risen sharply—
in some cases even surpassing those of tech stocks.
That leads to a surprising headline:
Exxon Mobil P/E Is Now Higher Than Nvidia — What’s Going On?
A Shift in Valuation Dynamics
Price-to-earnings ratios in tech are falling to more reasonable levels.
In some cases, these stocks are now:
- Cheaper relative to their own history
- More in line with (or closer to) the broader market
But “Cheap” Doesn’t Mean Risk-Free
This creates a split narrative:
- An opportunity (if AI investments pay off), or
- A value trap (if returns disappoint)
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