Nvidia stock unusually cheap at Chip Index, says Bernstein — What it means for investors

Nvidia Corp.’s valuation relative to the Philadelphia Stock Exchange Semiconductor Index has rarely been so attractive, and the multiple overall augurs well for future returns, according to Bernstein.

Relative to the chip index, Nvidia “currently trades at a ~13% discount, in the first percentile,” wrote analyst Stacy Rasgon. “Indeed, over the last 10 years there have only been thirteen days where NVDA’s stock traded cheaper relative to the SOX than it is trading now.”