Nvidia's valuation drops below Ljubljana Stock Exchange average

Nvidia's valuation has fallen below the average of blue-chip companies on the Ljubljana Stock Exchange, amid fears that a collapse in the AI investment cycle could trigger a global recession and roil world trade. The company's stock has declined for six consecutive weeks. Nvidia's market value dropped by roughly $1 trillion to $3.9 trillion in just over a week, with its forward price-to-earnings ratio now between 11 and 13, lower than the Ljubljana exchange's average of 13.9. Analysts have cut price targets, and the company faces a key test with quarterly results due Tuesday. European markets have remained resilient, with Frankfurt's DAX hitting a record high above 27,000 points, boosted by strong earnings from Siemens and others. Slovenian firms like Krka also reported solid results, while the departure of Nvidia CEO Jensen Huang raises questions about the company's future strategy.