Nvidia (NVDA, Financials), the semiconductor company best known for AI chips, graphics processors and data-center hardware, is starting to look cheaper after its recent pullback.
Shares have dropped about 16% since their May 14 record. The slide has wiped roughly $1 trillion from Nvidia's market value and made the stock cheaper on a valuation basis, according to a Bloomberg analysis.
It is a notable change for a company whose shares spent much of the AI boom moving higher. Nvidia's chips remain widely used in the data centers being built to train and run AI systems, so the business is still tied closely to technology companies' infrastructure spending.
The concern is more about expectations. After such a strong run, good results may no longer be enough to push the shares higher. Investors may want to see Nvidia continue beating the growth assumptions already built into the stock.
The recent drop now puts more attention on AI spending and Nvidia's upcoming results. If chip demand stays strong, the lower valuation could get another look from investors. Any slowdown, however, could add to concerns that the market got ahead of the company's growth.