Nvidia (NASDAQ: NVDA) stock has been losing steam of late. Entering trading on Tuesday, shares of the popular chipmaker were in negative territory for the year, down a little under 1%. It’s still early in the year, but for a stock that generated 171% gains in 2024, the slowdown is noteworthy.
It remains one of the most valuable companies in the world with a market cap of around $3.3 trillion, but despite its high valuation, there’s a case to be made that Nvidia may still be a great buy. And based on one metric, it may even be a steal of a deal right now.
A multiple that investors often use to value stocks is the price-to-earnings (P/E) ratio. That tells you how expensive a stock is in relation to its profitability, on a per-share basis. But P/E multiples can vary based on how much growth a business is generating and the sector that it’s in. Nvidia’s P/E multiple is more than…
