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.

Nvidia stock rose Wednesday as it continued to pare back some of its recent losses—but more big swings could be ahead.Shares in the chip maker rose 6.4% to $115.74, having closed the previous session up 1.

Nvidia (NASDAQ:NVDA) shocked the market last month by disclosing it had dumped all of its shares in artificial intelligence voice recognition expert SoundHound AI (NASDAQ:SOUN), Serve Robotics (NASDAQ:SERV),