However, in addition to its prospects above, Nvidia stock is also surprisingly cheap after the recent pullback. It now trades at a forward price-to-earnings (P/E) ratio of just 24, which is comparable to the S&P 500 's forward P/E of 20.7.

The chip maker's shares are down 14% in 2025, tumbling as Donald Trump's tariffs have triggered a rotation out of tech.

What Happened? Shares of leading designer of graphics chips Nvidia (NASDAQ:NVDA) jumped 6.9% in the morning session as markets experienced a boost after data from the Bureau of Labor Statistics revealed that inflation for the month of February 2025 came in better than expected.