Big Tech stocks were expensive. Then the market turned on AI

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After the recent downturn, many of those tech behemoths are now trading at valuations rarely seen. Nvidia Corp. is priced at a little more than 21 times forward earnings, which is basically the same as the S&P 500 and down from its 10-year average of 35 times. Amazon.com Inc. shares are priced at 23 times forward earnings, half their average multiple over the past decade of 46. Excluding long-time outlier Tesla Inc., the group — which also includes Alphabet Inc., Apple Inc., Meta Platforms Inc. and Microsoft Corp. — trades for 23 times estimated profits, the cheapest since the tariff tantrum in April.