As global stock markets tumble over deepening worries about war in West Asia, Nvidia, the world’s most valuable company, finds itself trading at its cheapest price-to-earnings multiple since before ChatGPT kicked off the AI boom.Shares of Nvidia have tumbled nearly 20 per cent from their record high close in October, with the company caught up in a broad market selloff over fears that the U.S. and Israeli war on Iran will keep oil prices elevated and fuel a wave of inflation that could force central banks to raise interest rates.The steep drop in Nvidia’s PE suggests the dominant AI chipmaker’s shares may be a bargain, but one tied to risks and uncertainty that have shaken investors’ confidence in the so-called AI trade.As a result of those stock declines and increased analyst estimates, Nvidia’s shares are now trading at about 19.6 times its expected 12-month earnings, their lowest valuation since early 2019, a year before the coronavirus pandemic and four years before OpenAI’s launch of ChatGPT ignited a rally in the shares of Nvidia and other AI-related stocks. Is Nvidia now facing changes with AI technology ?
