Nvidia now trades at around 45 times Wall Street's average earnings estimates for the next 12 months - a popular measure known as the forward price/earnings (P/E) ratio.
While investors rushed to buy Nvidia's stock in recent sessions, its P/E multiple has fallen simply because Wall Street's earnings expectations for the company rose even faster than its share price.
During Tuesday's session, Nvidia became the first chipmaker to boast a $1 trillion valuation.
AI was mentioned 86 times on Nvidia's conference call, beating out 52 mentions on Alphabet's (GOOGL.O) call and 35 mentions on Microsoft's (MSFT.O) call.
Reporting By Sinéad Carew, Noel Randewich and markets team reporters; Editing by David GregorioOur Standards: The Thomson Reuters Trust Principles.
Persons:
Nvidia Corp's, Jensen Huang, Bernstein, Stacy Rasgon, Susannah Streeter, Hargreaves Lansdown, Streeter, Sinéad Carew, Noel Randewich, David Gregorio Our
Organizations:
FRANCISCO, Nvidia, Hargreaves, Devices, Meta, Thomson
Locations:
Refinitiv, Alphabet's, Microsoft's