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Nvidia and Meta Platforms Are Now Cheaper Than the S&P 500. Which "Magnificent Seven" Stock Is the Best Buy in March?

By Mark GrundellYahoo FinanceMarch 8, 2026 at 7:37 PMNeutral1 min read

NVDA, META Valuations Dip Below S&P 500, Prompting Buy-Side Scrutiny

NVDA price214.25+0.78%
Fwd P/E: 42.93Mkt Cap: $5,155B52w H: 236.54

Nvidia's forward P/E of 42.93, while substantial, is now more attractive relative to the broader market, signaling a potential valuation reset after its explosive growth. This shift could make NVDA a compelling option for investors seeking high growth at a more palatable price.

What to watch next

Investors should monitor upcoming earnings reports and AI development announcements for the next significant price catalyst.

Key Takeaways

  • 1Nvidia and Meta Platforms are trading below the S&P 500's forward P/E ratio.
  • 2The article aims to identify the better 'Magnificent Seven' stock to buy in March.
  • 3This valuation change follows substantial gains for both companies.

This headline highlights an intriguing valuation shift for two Magnificent Seven stocks, Nvidia and Meta Platforms, which are now trading at a lower forward price-to-earnings multiple than the broader S&P 500. This could signal a potential buying opportunity for investors seeking growth at a more reasonable price, especially after their significant runs. The analysis will likely delve into their individual prospects and recent performance to determine which offers a better risk-reward balance for March, a crucial decision for growth-oriented portfolios.

Nvidia, a titan in the AI and semiconductor space, currently trades at a forward price-to-earnings (P/E) multiple of 42.93. This valuation, while robust, has recently dipped below the broader S&P 500's average, signaling a potentially more favorable entry point for investors. This development follows a period of prodigious growth for the company, fueling its integral role in the 'Magnificent Seven' cohort. For investors, this re-evaluation of NVDA's P/E multiple relative to the market suggests that its future earnings growth is being priced in at a level that, for the first time in a while, appears more aligned with broader market opportunities, rather than at a significant premium. This shift is critical because it challenges the narrative of an overheated valuation, presenting a more balanced risk-reward profile without detracting from Nvidia's fundamental strengths. The company continues to dominate the AI chip market, with demand for its GPUs showing no signs of abating. Its extensive ecosystem and continuous innovation efforts solidify its market leadership. While the current price stands at $214.25, up 0.7761% today, the market capitalization remains a massive $5.155 trillion, underscoring its significant influence. Looking ahead, the key for Nvidia will be sustained execution in its AI strategies and continued expansion into new market segments. Investors should closely watch upcoming quarterly earnings reports and any announcements regarding next-generation AI accelerators. These factors will likely be the primary drivers determining whether Nvidia can maintain its growth trajectory and justify its P/E multiple, even if it is now more aligned with market

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