Nvidia (NASDAQ: NVDA) keeps going from strength to strength. It passed up mighty Alphabet and Amazon to become the third-most-valuable "Magnificent Seven" stock, and it briefly topped a $2 trillion market cap valuation. And yet, though it's the third largest business of the Magnificent Seven by market cap, it's still the smallest as measured by annual sales.

Some evidence of this fact is that Nvidia stock trades for a whopping 66 times trailing-12-month earnings per share. However, Nvidia may not be nearly as expensive as it appears to be, even after the stock's incredible 400%-plus run higher since the start of 2023.

Much can be said about Nvidia's rise, the current data center investment supercycle driven by generative artificial intelligence (AI) that Nvidia helped spawn, and whether semiconductor peers can catch up and take some of Nvidia's market share.

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Source Fool.com