Nvidia's stock is the cheapest in 8 months, according to this key market metric

• Nvidia's earnings beat Wall Street's expectations last week, but that failed to translate into gains for its stock.
• The chipmaking giant's forward price-to-earnings ratio has dropped to its lowest level since December 2022, according to data from Refinitiv.

Nvidia shares look like more of a bargain now, even though the trillion-dollar semiconductor company has already racked up massive gains this year.

The chipmaking giant's forward price-to-earnings ratio has declined to an eight-month low of 33 times expected earnings as of Tuesday's opening bell, according to data from Refinitiv.

Forward P/E ratios measure a company's stock price against its expected earnings over the next 12 months, helping investors to assess whether shares are over- or undervalued.

Fellow Big Tech companies Apple, Microsoft, and Google parent Alphabet also have forward P/E ratios of around 30, per Refinitiv.

Nvidia has been one of the biggest success stories of 2023, with its share price soaring over 220% year-to-date.

Its specialized graphics processing units are seen as crucial for powering AI products like ChatGPT – so a massive surge in interest in that theme has helped power its stock higher.

Last week, the company reported blowout second-quarter earnings and upped its profit guidance for the three months ending September 30.

But those stellar results didn't translate into significant gains for its share price – leading to its forward P/E ratio falling from 46-times expected earnings to 33-times expected earnings, according to Refinitiv.