Dip is a growing concern, but past trends are “purchase”
Investors have been paying attention to Nvidia as stocks have been flooded over the past few weeks, but some degree of anxiety could be fostered due to the latest AI model from Chinese AI startup Deepseek. However, whenever Nvidia shares have fallen by more than 10% in the past, the report suggested a great buying opportunity.
Motley Fools also said Nvidia has held almost 21 extraordinary rallies since early 2020, with an increase of over 80% over the past 12 months.
Since 2015, Nvidia’s inventory has fallen double digits from its peak almost every year, with the exception of one since 2015. According to MotleyFool, every drop surged to a new high.
Another pattern discovered by Motley Fool is that Nvidia tends to rise with each quarterly revenue report. Nvidia has developed a pattern that breaks Wall Street estimates, particularly since the generation AI boom after Openai launched the ChatGPT.
Nvidia’s fourth quarter revenue was announced on February 26, 2025, with analysts expecting revenue to increase by 63% year-on-year. This will be the company’s first quarter reporting revenue from the strong New Blackwell Chips. According to Nvidia CEO Jensen Huang, Blackwell Chips had “unusual” demand. Some analysts said these chips could be undervalued by Wall Street.
Risks to consider
Nvidia previously staged dramatic recovery, but history may not be repeated at times. The rapid change in the AI ecosystem brings competitive pressure on Nvidia, which has not had to be addressed before, like a new competition with Deepseek. High ratings are another concern, and are currently trading at 28.5 times the 12-month sales. If Nvidia grows slower, we look at serious selling pressure on the stock. Analysts say that growth almost certainly derails when inventory falls. Many investors are concerned that Deepseek’s AI technology could have a negative impact on Nvidia’s growth.
Positive signs from Nvidia’s biggest customers
Recently, some of Nvidia’s biggest customers have shared updates on quarterly performance, and the news has been promising. According to Motley Fool, each has revealed plans to focus on significantly increasing AI investments and expanding their ability to train and deploy AI models. This indicates an increasing commitment to AI. This is a sign that Nvidia is an important player in this space.
FAQ
Why has Nvidia’s shares been declining recently?
Nvidia’s shares recently acquired DIP, especially due to concerns about growing competition from Chinese AI startup Deepseek. Deepseek’s low-cost AI model made investors worried about a potential slowdown in demand for NVIDIA’s GPUs.
Has Nvidia always bounced back after a stock price drop?
Yes, historically, whenever Nvidia’s stock fell by more than 10%, it was eventually rebounded to a new high. This pattern has been held true almost every year since 2015, with one exception.
