Companies that benefit from the proliferation of artificial intelligence (AI) have soared big time over the past year or so, but their impressive gains mean that they aren't cheap anymore.

Nvidia (NASDAQ: NVDA) is a prime example of how an AI-fueled surge has elevated the valuations of semiconductor companies that are capitalizing on the adoption of this technology. The graphics-card specialist was trading at just under 13 times sales at the end of 2022, but its 233% gains in the past year mean that it is now trading at a much more expensive 33 times sales.

That reading is significantly higher than Nvidia's five-year average sales multiple of 20. However, the company with whose help Nvidia has dominated the AI chip market so far hasn't received much love from the market. Shares of Nvidia's foundry partner Taiwan Semiconductor Manufacturing (NYSE: TSM), popularly known as TSMC, are up just 25% in the past year.

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Source Fool.com