Nvidia has been a top artificial intelligence (AI) stock in the past year as the semiconductor bellwether is playing a pioneering role in the proliferation of this technology with its graphics cards, whose massive computing power is allowing tech titans to train large language models (LLMs) such as ChatGPT.

Nvidia's eye-popping revenue and earnings growth have led to a sharp surge in the company's stock price, which has gone up 223% in the past year. That red-hot rally explains why Nvidia stock is now trading at a rich 30 times sales and 72 times trailing earnings. However, Nvidia seems attractively valued as far as its forward earnings and sales multiples are concerned, thanks to its ability to maintain its outstanding growth.

After all, Nvidia leads the lucrative market for AI chips by quite some distance, which explains why analysts are expecting its earnings to double every year for the next five years. As a result, Nvidia can justify the rich multiples it is commanding right now, but value-oriented investors may want to look at cheaper options to capitalize on the AI boom.

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Source Fool.com