Nvidia's shares have taken a significant hit since hitting an all-time high on May 14, plummeting nearly 13.5%. This decline has wiped out over $1 trillion in market capitalisation, despite a 3.6% rise today. The company's forward price-to-earnings (P/E) ratio has dropped to its lowest level since June 2019, standing at 22x – significantly lower than the entire S&P 500's forward P/E ratio of just above 20.

The decline in Nvidia's valuation can be attributed to a double whammy: investors pulling out of the company and into memory stocks, as well as concerns that the AI trade is losing steam. However, despite this downturn, Nvidia remains an attractive prospect due to its strong fundamentals. The chip giant owns a staggering 97% of the server GPU market and reported record revenue of $81.6 billion last quarter.

Wall Street expects continued strong growth through the rest of this year, which could make Nvidia's shares look like a bargain with such a cheap forward P/E ratio. In comparison, rivals AMD and Intel are trading at 73x and 137x respectively. With its dominant market share and robust financials, Nvidia is well-positioned to weather any economic uncertainty.