A once-in-a-decade chance to buy Nvidia shares at a discount?

Nvidia (NASDAQ:NVDA) shares are trading at a forward price-to-earnings (P/E) multiple of 17. That’s lower than the S&P 500.

The last time this happened was over a decade ago. So is this a rare chance to buy the stock at a discount, or time to worry?

Nvidia’s biggest customers include Amazon and Microsoft. Both companies have plans to invest heavily in artificial intelligence (AI) data centres.

Investors, however, have become sceptical about the wisdom of these plans. And the two companies’ share prices have been falling as a result.

That creates a strong incentive to think again. On top of this, there are questions about how strong the underlying demand really is. Amazon and Microsoft have deep pockets. But they’ll need to see returns on their investments sooner or later.

If a major customer decides to pull back on data centre spending, the implications for Nvidia could be huge. And that’s a major risk.

Demand, however, is only one half of the equation. There’s a danger Nvidia’s customers might even become competitors in the future.

A number of Nvidia’s customers – including Amazon and Microsoft – have been working on their own chips. And these are serious competitors.

In several cases, rival chips are more powerful and more efficient. But switching involves more than just buying different hardware.

Moving away from Nvidia’s architecture means rewriting code, retraining developers, and…