Nvidia, once the hottest AI stock, is cooling down as its price-earnings multiple has fallen dramatically. Investors aren't convinced the company can keep delivering blockbuster results. At less than 17 times expected earnings, the stock's valuation is half what it was in 2025, down from above 50 in 2023.

Even with AI stocks roaring again this week, plenty of worries remain. Jensen Huang, CEO of Nvidia Corp., faces growing skepticism about sustained growth. The original AI darling now trades at levels that suggest the market is questioning its ability to maintain blockbuster results.

The decline reflects broader caution around AI spending and whether companies can monetize the technology at the scale previously anticipated. As the multiple compresses, Nvidia's valuation comes back down to earth after years of premium pricing.