Nvidia’s recent stock market correction has brought its valuation metrics back to levels seen before the ChatGPT-driven AI boom. The semiconductor giant’s forward price-to-earnings ratio has dropped to approximately 35x, similar to where it traded before OpenAI’s ChatGPT launch sparked massive interest in artificial intelligence investments. Despite the valuation reset, Nvidia continues to dominate the AI chip market with its graphics processors being essential for training large language models and other AI applications. The company’s recent stock decline of about 15% from its peak has concerned investors, though analysts maintain strong growth projections for Nvidia’s AI-related revenues. The correction reflects broader market dynamics and profit-taking rather than fundamental changes in Nvidia’s AI business prospects. The company’s latest earnings report showed record revenue of $22.1 billion, largely driven by data center and AI chip sales. Bank of America analysts suggest the current valuation provides a more attractive entry point for investors, noting that Nvidia’s growth trajectory in AI remains robust. The stock’s adjustment appears to be a healthy correction that brings valuations more in line with historical norms while maintaining the company’s position as a leader in AI infrastructure.