On December 20, Bernstein highlighted that Nvidia (NVDA.O) has emerged as particularly appealing in terms of its valuation when compared to the Philadelphia Semiconductor Index (SOX), pointing to a bright future in terms of potential returns. Analyst Stacy Rasgon remarked that Nvidia's current valuation is trading at roughly a 13% discount relative to the chip stock index, marking a historically low point. Over the past decade, there have been only 13 trading days when Nvidia's valuation dipped below its current level. Nvidia's recent valuation stands at approximately 25 times its projected future earnings per share (EPS), positioning it at the 11th percentile within its valuation range over the past ten years. This makes it notably inexpensive on an absolute basis. Historical data indicates that whenever Nvidia's valuation drops below 25 times its future EPS, investors who purchase the stock and hold it for one year have, on average, realized returns exceeding 150%, with no recorded instances of negative returns. As a result, Bernstein has assigned Nvidia an 'Outperform' rating, setting a target price of $275.