Artificial intelligence (AI) stocks scored massive wins for investors last year and led the Nasdaq to a double-digit gain. This momentum continued into the early days of 2025, but in recent weeks, these once top-performing stocks have struggled.

Nvidia (NASDAQ:NVDA) has had an underwhelming start to 2025, as the AI chip giant grapples with a mix of unfavorable macro developments and

The chip maker is currently trading at 23.3 times earnings expected over the next 12 months, which is below its five-year historic average of 40 times.

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.