However, in addition to its prospects above, Nvidia stock is also surprisingly cheap after the recent pullback. It now trades at a forward price-to-earnings (P/E) ratio of just 24, which is comparable to the S&P 500 's forward P/E of 20.7.

What Happened? Shares of leading designer of graphics chips Nvidia (NASDAQ:NVDA) jumped 6.9% in the morning session as markets experienced a boost after data from the Bureau of Labor Statistics revealed that inflation for the month of February 2025 came in better than expected.

Nvidia (NVDA) and chip stocks led a Nasdaq rebound in early morning trading on Wednesday. The Nasdaq Composite index gained more than 1% in early morning trading, following a February CPI report showing that inflation slowed more than expected last month.