Investors have grown up to associate Nvidia(Nasdaq: NVDA) With an increase in stock performance – and for a good reason. The climbing of shares of more than 2,000% in the past five years has helped investors generate breathtaking yields as Artificial Intelligence (AI) Boom has fueled the growth of the Titan, pushing income at registration levels.
But that does not mean that the course of the course of Nvidia’s action was a straight line. Nvidia has known its just part of drops along the way – and one of them is currently occurring. The stock slipped 16% in the last month and the Halled technology Nasdaq fell into the correction territory, losing 10% of its last summit in December in the midst of concerns concerning the impact of President Trump’s prices.
Investors fear that higher prices on imported goods are put pressure on business profits and the consumer handbag. And this has caused a takeoff of high growth actions, at least for the moment.
Now the big question is how long the actions of Market Star Nvidia will stay in the slump. Let us bring together some clues by considering how Nvidia’s actions bounced previous declines.
Image source: Getty Images.
Nvidia became a public a certain time in 1999, and at the modest price of $ 12 per share. At the time, the company of the company revolved around the video games and graphic market service with its high power chips. The company has evolved a lot since then. He still designs these chips, called graphic processing units (GPU), but in recent years it sells them and related products and services to many industries. And the AI has become the largest growth engine of the company, income from the data center representing almost 90% of the total income in the last quarter.
Given all of this, it is very useful to examine Nvidia’s performance after previous dives in recent years – when the company, although smaller, looked like today’s Nvidia. So, in this spirit, let’s look at the decrease periods in 2018.
The actions of the technology giant slipped in 2018 into the concerns of the prices that Trump provided during his first mandate and, as a request for graphics cards used in the mining of cryptocurrency, weighing on the growth of NVIDIA income. The title has decreased by 31% for the year, with losses mainly in the last three months. NVIDIA rebounded in January 2019, and although the stock dived periodically, it won for the full year.
In February and March 2020, Nvidia’s shares slipped with most of the market during the COVVI-19 market crash, but the shares advanced in April, ending the year with an increase of 121%. The AI boom was already beginning to overeat the growth of the company, the income from the data center increasing by 124% during the financial year.
NVIDIA had a difficult period in 2022, as well as the NASDAQ, as an increase in interest rates and higher interest rates weighed on growing companies and investors asked for actions less sensitive to economic changes. The technology giant lost 50% that year, underperforming the Nasdaq.
But in 2023, Nvidia began her meteoric ascent, and from that moment until the end of last year, he climbed more than 800%. This is that the profits have skyrocketed, net revenues and revenues both increasing in triple figures at registration levels on a quarterly basis. The AI boom had grown and Nvidia benefited.
Thus, looking at this performance story, it is quite clear that Nvidia has generally recovered quickly difficult times. Even after a bad year, like 2022, the company has more than offset. This shows us that Nvidia has not dropped for a very long time in the past, and when he has done so, he is always rewarded for long -term investors.
Does this mean that recent declines in the Nvidia stock will be short-lived? History suggests that this could be the case, but it is important to remember that although history is known to repeat itself, it does not do so in each situation. If general economic uncertainties or pressure continue, Nvidia and other growth players may not be ready to bounce back so early.
The good news, however, is that Nvidia’s long -term growth prospects remain strong. The AI market is planned for explosive growth, technology giants continue to invest billions of dollars in Nvidia products and services, and the accent put by NVIDIA on innovation should ensure its management position. So, even if Nvidia’s actions struggled longer than we wanted, this best AI player always has what it takes to excel – from the point of view of the profits and performance of actions – in the long term.
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