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Nvidia has continued AI growth, plus opportunities in robotics, PC gaming and autonomous driving ... More that make it an attractive buy at the current valuation.
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You can buy Nvidia stock on the cheap right now, but should you? That’s the question many investors have been asking since the once-unstoppable NVDA stock fell to its lowest P/E ratio since early 2019.
Get your answer now with this look at what happened to Nvidia, factors that could spark a rebound and risks ahead for the company.
Why Has Nvidia Stock Dropped?
Nvidia stock gained 168% in the first 10 months of 2024 as investors bought up shares to get their piece of the AI boom. The stock price rally peaked in early November and then turned south when investors got nervous about lingering high interest rates.
The negative trend for Nvidia deepened in 2025 as a series of headlines prompted many to question the chip designer’s growth outlook:
DeepSeek. In January, Chinese AI company DeepSeek released an AI chatbot that requires relatively low computing power. DeepSeek's innovation, if replicated, could mean lesser demand for Nvidia's premium, high-powered hardware.
Tighter export restrictions. In February, Bloomberg reported the Trump administration may tighten existing restrictions on semiconductor exports to China.
Tariffs. In March, President Trump ramped up the tariff commentary, culminating with the "Liberation Day" announcement of sweeping reciprocal tariffs. Semiconductors are excluded from the latest tariff plan, but that could change. Although Nvidia CEO Jensen Huang said in a press briefing that he doesn't expect a big tariff impact, investors were still spooked.
Global economic uncertainty. Even prior to the Liberation Day announcements, investors were becoming increasingly nervous about the tariff rhetoric from the U.S. presidential administration. The investing climate has become increasingly volatile as a result. Growth stocks, Nvidia included, have been hit as investors seek shelter in safer assets.
January through early April, Nvidia stock is down almost 30%.
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