Bernstein: NVIDIA's valuation is historically discounted compared to the Philadelphia Semiconductor Index.

Nvidia's stock price has underperformed the overall market in recent months, but according to Bernstein, this chip manufacturer at the core of artificial intelligence trading is trading at a rare discount relative to the Philadelphia Semiconductor Index. The stock is currently trading at around 25 times expected earnings, which analyst Stacy Rasgon writes in the report, "For this company, a 25x forward P/E ratio means that the stock's valuation is in the 11th percentile of the past 10 years valuation distribution", making it relatively cheap in absolute terms. Compared to the Philadelphia Semiconductor Index, Nvidia's current trading price is at a 13% discount, in the first percentile, and "in fact, in the past 10 years, there have only been 13 days when Nvidia's stock price was cheaper relative to the index."