Nvidia ( NVDA 1.80%) remains one of the best artificial intelligence (AI) stocks on the market. But with the chipmaker now trading at a price-to-sales multiple of 26.4, many investors may wonder if shares have gotten too expensive to buy. Don't be fooled: Nvidia stock is still reasonably priced.

On Wednesday, Nvidia became the first company in history to reach $4 trillion market valuation as shares rose more than 2 percent, reports CNBC. The GPU maker's stock has climbed 22 percent since the start of 2025, continuing a trend driven by demand for AI hardware following ChatGPT's late 2022 launch.

U.S. stock indexes were buoyed on Wednesday by AI confidence thanks to Nvidia (NVDA.O), which became the first company to reach a market cap of $4 trillion.

Yet several prominent hedge fund managers sold Nvidia during the first quarter and added shares of Palantir Technologies ( PLTR 3.54%), a stock that has returned 2,000% since January 2023.

The sustaining growth of the company’s AI revenue and cloud platform Azure are not fully priced into the stock, Oppenheimer analysts said.

Silicon Valley chipmaker Nvidia on Wednesday became the first publicly traded company to surpass a $4 trillion market valuation, putting the latest exclamation point on the investor frenzy surrounding an artificial intelligence boom powered by its industry-leading processors.

Many investors may wonder if shares have gotten too expensive to buy. Don't be fooled: Nvidia stock is still reasonably priced. Get the story here.

NVIDIA Corporation (NASDAQ:NVDA) is one of the Top 10 AI Stocks in the Spotlight. On July 7, Citi reiterated the stock as “Buy” and raised its price target on the stock to $190 per share from