Investing.com -- Technology stocks are shrinking to almost unprecedented valuation levels, trading at multiples nearly identical to consumer staples companies, according to FactSet data.

The XLK ETF, which tracks the S&P 500 technology sector, is currently trading at roughly 23 times forward earnings, while the XLP consumer staples ETF has a multiple of just around 21 times forward earnings.

This valuation parity marks a stark contrast to historical norms: technology companies typically command higher valuations due to their growth profiles, while consumer staples attract investors seeking lower-risk, higher-yielding investments during periods of market uncertainty.

Wall Street has grown concerned in recent months about artificial intelligence disrupting traditional software companies, with many SaaS (Software-as-a-Service) stocks taking major hits.

Individual stock comparisons further highlight the trend. Nvidia, the company at the front and center of the AI revolution, currently trades at about 23 times forward earnings. Retail giant Walmart sells at a multiple of more than 42 times next year's estimated profits.

Nvidia's forward price-to-earnings ratio is expected to decline even further, as analysts are expected to increase their earnings estimates for the chipmaker following its strong latest quarterly report.

Despite posting a beat on earnings, revenue, and guidance, NVDA's stock barely moved following the report, underscoring investor wariness of betting on AI-related companies.