Nvidia's stock price has fallen short of the market in recent months, but according to Bernstein, the chipmaker, which is at the core of artificial intelligence trading, has reached a rare level of discount compared to the Philadelphia Stock Exchange Semiconductor Index. The stock's recent trading price is about 25 times the expected earnings per share. Analyst Stacy Rasgon wrote in the report, “For this company, a dynamic price-earnings ratio of 25 times means that the stock's valuation is at the 11th percentile of the valuation distribution over the past 10 years,” which is quite cheap in absolute terms. Compared to the Philadelphia Stock Exchange Semiconductor Index, “Nvidia's current trading price is about 13% off, which is in the first percentile,” and “in fact, in the past 10 years, Nvidia's stock price compared to the index has only been cheaper for 13 trading days than it is now.”

Nvidia's stock price has fallen short of the market in recent months, but according to Bernstein, the chipmaker, which is at the core of artificial intelligence trading, has reached a rare level of discount compared to the Philadelphia Stock Exchange Semiconductor Index. The stock's recent trading price is about 25 times the expected earnings per share. Analyst Stacy Rasgon wrote in the report, “For this company, a dynamic price-earnings ratio of 25 times means that the stock's valuation is at the 11th percentile of the valuation distribution over the past 10 years,” which is quite cheap in absolute terms. Compared to the Philadelphia Stock Exchange Semiconductor Index, “Nvidia's current trading price is about 13% off, which is in the first percentile,” and “in fact, in the past 10 years, Nvidia's stock price compared to the index has only been cheaper for 13 trading days than it is now.”