Aug 28 Reuters Increased analysts39; estimates since Nvidia39;s strong quarterly report last week have left the world39;s most valuable chipmaker trading at its lowest forward earnings multiple in eight months.

Nvidia39;s stock added nearly 2 to 468 on Monday, leaving it down almost 1 since last Wednesday, when the Santa Clara, California company far exceeded expectations with its quarterly revenue forecast as an artificialintelligence boom fueled demand for its chips.

At that price, Nvidia shares are trading at the equivalent of around 33 times expected earnings over the next 12 months, according to Refinitiv data. That forward PE compares to over 46 a week ago, and it is now at its lowest since December 2022.

Nvidia39;s stock has more than tripled this year amid soaring demand for its topoftheline processors used to power generative AI technologies that can read and write in humanlike ways.

Priceearnings ratios help investors gauge the value of companies, but relying on analysts39; estimates of future earnings creates uncertainty.

Any time you use a forwardlooking thing that involves an estimate in a very new market and very uncertain economic environment, I think at a minimum you have to take it with a pretty huge grain of salt, warned Ross Mayfield, an investment strategy analyst at Baird.

Benchmark Research analyst Cody Acree has a buy rating on Nvidia but pointed to the company39;s reliance on Taiwanese chip foundry TSMC, which also serves Apple and other…