With a forward price-to-earnings (P/E) multiple of just 25.5, Nvidia shares are valued only slightly higher than the Nasdaq-100 estimate of 25, making them quite affordable and reducing the risk of downside. The stock is likely to remain flat this year unless there is a severe deterioration in macroeconomic conditions, such as a recession.

Nvidia stock fell on Monday despite more signs that demand for the chip maker’s artificial-intelligence products remains high. Shares dropped 5.1% to $106.98, their lowest close since Sept. 9, according to Dow Jones Market Data.

Investors appear worried about the health of AI spending. But big AI customers don’t seem hesitant, an analyst notes.

As a result, Nvidia stock slid about 14% over the past month. And this has brought valuation down -- Nvidia now trades at only 24 times forward earnings estimates, it's cheapest level in more than a year.