Nvidia's stock is now trading well below the price-to-earnings (P/E) multiple it has averaged over the past three years. It's a good example of how a fast-growing business that's trading at a high P/E could end up looking a whole lot cheaper in the future, as its bottom line grows.

Nvidia Corporation's AI dominance expands as sovereign AI, automation, and efficiency trends emerge. Check out my NVDA stock Q4 update.

A recent stumble, however, came after the Chinese startup DeepSeek unveiled a lower-cost AI model that was seen as a threat to the dominance of U.S. rivals, driving Nvidia down roughly 17% on January 27, equivalent to $593 billion — a record one-day market value loss.