The 4% drop in the Nasdaq Composite Index (NASDAQINDEX: ^IXIC) on March 10 served as a wake-up call to investors. While that was not a record drop by any measure, it was the worst one-day decline since the fall of 2022,

Nvidia (NVDA) and chip stocks led a Nasdaq rebound in early morning trading on Wednesday. The Nasdaq Composite index gained more than 1% in early morning trading, following a February CPI report showing that inflation slowed more than expected last month.

The major indexes improved Tuesday afternoon. Nvidia and Tesla tried to make up ground after Monday's severe declines.

However, in addition to its prospects above, Nvidia stock is also surprisingly cheap after the recent pullback. It now trades at a forward price-to-earnings (P/E) ratio of just 24, which is comparable to the S&P 500 's forward P/E of 20.7.