Nvidia stock was rising early 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 1.4% to $110.31 in premarket trading, having closed the previous session up 1.

With a forward price-to-earnings (P/E) multiple of just 25.5, Nvidia shares are valued only slightly higher than the Nasdaq-100 estimate of 25, making them quite affordable and reducing the risk of downside. The stock is likely to remain flat this year unless there is a severe deterioration in macroeconomic conditions, such as a recession.

Depending on how you look at it, Nvidia Corp.’s stock can be seen as quite cheap, according to a Melius Research analyst.

Nvidia stock fell on Monday despite more signs that demand for the chip maker’s artificial-intelligence products remains high. Shares dropped 5.1% to $106.98, their lowest close since Sept. 9, according to Dow Jones Market Data.

NVIDIA is a fundamental performer in AI technology and innovation. Investors should closely examine its stock trends due to its impactful technologies and strong market interest. Experts are optimistic about NVIDIA's innovative solutions and solid financial performance,