Nvidia Stock Just Became The Bargain Of The AI Boom

After years of skyrocketing gains driven by surging demand for AI processors, Nvidia Corp. (NASDAQ:NVDA) may be offering investors a rare window of opportunity. Nvidia's current valuation metrics suggest the stock looks surprisingly reasonable by its own historic standards, despite standing at the foundation of the AI revolution. NVDA stock is down. See the chart and price action here. NVDA is a Bargain Nvidia stock currently trades at roughly 34.95 times earnings and 19.44 times sales, per Benzinga Pro data, placing it near the lowest multiples seen since the early phase of the AI boom. For comparison, these ratios were briefly touched last April during the U.S.-China tariff turmoil — a period many investors feared would curb chip exports. The market's anxiety proved short-lived: Nvidia's shares subsequently staged a powerful rally that more than doubled its market capitalization to above $5 trillion by October, cementing its position as the world's most valuable technology producer. The current backdrop feels strikingly similar but arguably stronger. Over the past year, Nvidia's revenue has soared 65%, reflecting relentless demand for its high-end GPUs that power data centers, large language models and cloud AI services. The company's latest financials continue to show expanding margins and rising free cash flow, suggesting its AI dominance is still deepening while competitors struggle just to secure chip supply. At a P/E below 35, Nvidia is trading at a multiple comparable to far slower-growing tech peers — even though its top-line growth rate dwarfs almost every company in the S&P 500. That combination of rapid expansion and moderating valuation is what makes Nvidia's current setup particularly compelling. In effect, investors are paying a growth-moderate price for a hypergrowth business that remains at the center of the most powerful technology cycle of the decade. With AI infrastructure demand set to accelerate further and Nvidia's next-generation Rubin chips expected to drive another wave of data center spending, the stock's recent pullback may represent not a warning sign, but another golden entry point in the defining trade of the AI era. NVDA Price Action: According to data from Benzinga Pro, Nvidia stock was down 1.97% at $167.86 at the time of publication Friday. Photo: Sudarsan Thobias / Shutterstock