The chip maker is currently trading at 23.3 times earnings expected over the next 12 months, which is below its five-year historic average of 40 times.

However, in addition to its prospects above, Nvidia stock is also surprisingly cheap after the recent pullback. It now trades at a forward price-to-earnings (P/E) ratio of just 24, which is comparable to the S&P 500 's forward P/E of 20.7.

CompanyOverview|NASDAQ:NVDA] Headwinds aside, the outlook for NVIDIA's (NASDAQ: NVDA) growth and long-term profitability is undeniable. AI is driving results; the company is expanding into new verticals and is forecasted to grow at a double-digit pace for at least the next ten years.

Rumors of Nvidia's demise were greatly exaggerated. The AI chip king posted impressive results Wednesday night, and its overall growth prospects look as promising as ever. The stock’s 8.5% decline after earnings makes the opportunity all the more compelling for investors.

Nvidia (NASDAQ: NVDA) stock has been a fantastic medium- and long-term winner and even a winner over the last year. But shares of the artificial intelligence (AI) chip and technology leader have been having a tough time recently.