The craze around artificial intelligence (AI) has sent shares of several companies soaring this year. Nvidia (NASDAQ: NVDA) is one of the foremost examples of this trend -- shares of the semiconductor giant have jumped a whopping 180% so far in 2023.

This terrific rally has made shares of Nvidia very expensive as the stock is now trading at 213 times trailing earnings and 39 times sales. Those multiples are significantly higher than Nvidia's already expensive five-year average P/E of 67 and sales multiple of 18. For some more perspective, the S&P 500 has a price-to-sales ratio of 2.45 and earnings multiple of 19.

So, it is safe to say that Nvidia stock is expensive by quite some margin. However, the forward earnings multiple of 52, based on estimates, suggests that the company's earnings are on track to grow at a rapid pace. Nvidia's forward earnings ratio also suggests that the stock is only a tad overpriced when compared to its five-year average forward earnings multiple of 41.

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Source Fool.com