Nvidia Is Down 30% From Its High. History Says This Is What Happens Next.
The chipmaker's stock could be a bargain buy today.
Nvidia's stock price has plummeted 30% from its all-time high, losing its title as the world's most valuable company. This isn't Nvidia's first drop, as it has plummeted at least 20% five times over the past five years. Despite these setbacks, Nvidia has gained over 500% during this period, indicating strong potential for growth.
The company's stock is currently dropping due to a combination of factors, including a broader tech sell-off and the ongoing investigation into CEO Jensen Huang's alleged affair, which has led to concerns about potential political ramifications. However, analysts anticipate Nvidia's sales growth to triple this year and next year, with the company poised to deliver 90% sales growth overall in 2026.
While the current slump could last beyond 12 months, history suggests that Nvidia will ultimately bounce back and continue to thrive in the AI development landscape.
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