Nafidia (Nasdaq: nvda) The pioneer, who is undoubtedly the prosperity of artificial intelligence (AI) during the past two years, has increased more than 600 % since the beginning of 2023 and the market cover is now hovering about 3 trillion dollars.
However, recently, NVIDIA shares seemed amazingly deadly. The stock prices for the leader of the artificial intelligence chip fell to about 16 % so far, and the stock decreased by 8 % on Thursday after its profit report even with its victory over estimates and offered strong guidelines. The company announced the growth of revenue by 78 % in the fourth quarter to 39.3 billion dollars, which topped the consensus at 38.2 billion dollars, and the profits of the modified arrow (EPS) improved from $ 0.49 to $ 0.89, before estimates at $ 0.85. Finally, the first -quarter instructions called for revenues of about 43 billion dollars, better than the expectations of analysts of $ 42.05 billion.
The sales process may refer to some investors’ fatigue with NVIDIA, and the stock continued to slip into the days after that, as concerns about president Donald Trump’s new tour of the definitions were arrested, as well as concerns that some of its chips have been illegally exported to China. The stock is now trading 27 % of its peak a few months ago and at its lowest point since September 2024.
For investors, the shares decline provides a dilemma. Many sit on great gains from the shares of NVIDIA and they may ask whether the sale is more logical as it seems that the company’s momentum slows down and that the total economic expectations have become more feasible.
Let’s look back in the history of the modern arrow to see if it can reach where the stock will go from here.
The semiconductor sector tends to be periodic and volatile, and become NVIDIA to become one of the most valuable companies in the world that did not come smoothly.
The graph below shows the extent of its peak, since it began the mutation of artificial intelligence in 2023.
NVDA data by Ycharts.
When looking at data, there has been only another occasion in the past two years as NVIDIA has declined further. The sale in July 2024 began with broader concerns about investing the Inauguration of Amnesty International, which slows down the concerns that large cloud computing companies likes companies. Microsoft and alphabet The plus has been spent on new data centers and NVIDIA chips without seeing meaningful returns to justify the expenses. The sales process appears to call for assessments in the artificial intelligence sector.
While NVIDIA has faced a dual decline during that session, it has returned to trading at high levels by October 2024, just a few months after its start.
If we reduce and take a longer point of view, we see a similar pattern.
NVDA data by Ycharts.
As you can see, NVIDIA has seen twice in the past decade through 50 % or more. The first came in 2018 after an increase in shares as fears about the high interest rates, tensions with China, the bubble bubble in coding currency mining, the slow global economy (including slowing demand for semiconductors), and pressure on shares. NVIDIA’s revenues decreased during most of 2019, just as investors expected. However, the arrow has returned at its highest levels ever within nearly a year and a half than the beginning of this clouds, more than twice the bottom.
Likewise, the stock decreased in 2022, along with the broader collapse in technology shares, as its revenues dried up from the demand related to the encrypted currency, prompting its total revenues down again. However, excitement about artificial intelligence helped raise stocks to the highest levels ever in about a year and a half again.
It is impossible to determine the time when the current clouds will continue in NVIDIA shares or to what extent the stock will decrease.
However, what we know about NVIDIA is that the demand for new Blackweell chips still exceeds the offer. The company’s competitive advantage in Data Center drawings (GPU) that make up the backbone of artificial intelligence applications is increasing, and cloud computing giants increase the Capica Expenditure this year. In addition, the race is expected to continue towards artificial public intelligence (AGI) even if the global economy is weak.
For Nvidia, these are all good news. At the same time, the arrow is now cheap as it was since it started the mutation of artificial intelligence as it is traded in a price rate S & P 500Even with the company growing much faster than the wide market index.
NVIDIA will never be a low -risk stock, but the arrow is likely to recover its last losses at some point. It has wore sharp withdrawals in the past, its technological advantages and location determination in this industry makes it ready to achieve continuous growth. Trading a discount, the arrow looks like a great purchase now.
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Susan Fry, CEO of Alphabet, is a member of the Motley Fool Board of Directors. Jeremy Bowman has positions in Nafidia. Motley Fool has positions in Alphabet, Microsoft and NVIDIA and recommends it. Motley Fool recommends the following options: Long January $ 2026 $ 395 on Microsoft and Short January 2026 $ 405 calls on Microsoft. Motley Fool has a disclosure policy.
Nafidia decreased 27 % of its peak. History says this is what happens after that. It was originally published by Motley Fool
