The NASDAQ has dropped considerably while investors are embedding technological actions.
If there is one thing that investors really don’t like it, it’s uncertainty. At present, a multitude of factors ranging from new prices, geopolitical disorders in the Middle East and Europe, economic indicators such as unemployment claims – and even a few whispers of stagflation – made investors uncomfortable.
After plane to record heights in the past two years, the Nasdaq Composite has become south – and the technological actions of mega -spaces have sold in an epic way. Last month, artificial intelligence (ai) darling Nvidia (Nvda -0.66%)) has lost about $ 600 billion of market value after a 16% drop in the course of action.
Could more drops be in reserve for Nvidia, or is it now a lucrative opportunity to take advantage of the market crisis and buy the decline?
Nvidia’s affairs seem to be well positioned
The direction in which the course of action is evolving and the fundamental principles of underlying companies for a specific company are not always correlated. Although Nvidia’s actions have been slipping for several weeks now, the financial profile below shows a fairly convincing image – the one that highlights the demand for NVIDIA products and services is in demand, and the company is able to meet this demand at a very profitable rate.
NVDA Revenue (quarterly) data by Ycharts
A good way to assess what the future of Nvidia could look like to pay attention to the movements of its customers. Some of Nvidia’s largest customers include cloud hyperscalers Microsoft,, AlphabetAnd Amazonas well as another “magnificent seven” member, Meta-platforms.
Each of these companies recently published profits for the whole calendar year 2024. During their respective profits, investors learned that these AI giants are preparing to spend North of $ 320 billion on AI infrastructure at the upper end of their advice this year.
Given that competition on the GPU market in the data center is still limited, I think it is very likely that Nvidia will greatly benefit from the increase in capital expenses (CAPEX) among its greatest existing customers.
Nvidia pipeline looks incredible
In the past year, investors have been dotted with discussion points on NVIDIA, Blackwell’s new generation GPU architecture. Well, Blackwell is finally there, and its first results did not disappoint. During the fourth quarter, Blackwell’s revenues reached $ 11 billion – which was above internal management estimates, according to Nvidia’s financial director Colette Kress.
While Blackwell should be Nvidia’s latest growth engine in the short term, the company is already working on a range of new products that should not be overlooked.
Barely a few days ago, the CEO of Nvidia, Jensen Huang, went on stage at the company’s large -scale conference. In addition to Blackwell, Huang presented a range of double successor architectures Blackwell UltraRubin and Rubin Ultra. Over the next two years, NVIDIA should continue to publish refined versions of its GPU already market leader.
In my eyes, the Big Tech expenditure forecasts that I have referenced above indicate that AI remains an absolute priority, and I think that supports Nvidia’s efforts to double research and development (R&D) and continue to innovate at light speed.
Image source: Getty Images.
Is Nvidia Stock a good purchase right now?
The graph below illustrates Nvidia Price to profits (P / e) multiple in recent years. At a p / e of around 40, Nvidia’s actions are actually negotiated near its cheapest valuation on a P / E base in five years.
NVDA PE ratio data by Ycharts
The AI revolution has not only served as a bell in Nvidia – it has represented a transformative change in the functioning of the company, mainly a company focused on a company that now feeds a myriad of AI requests for the largest companies in the world.
Although a tract stock course can give the appearance of a lower story, the trends analyzed in this room suggest that Nvidia’s future prospects seem incredibly brilliant. The actions seem to be negotiated against a good deal in relation to the levels of historical evaluation, making the current sales action a formidable opportunity to double and Buy the drop in Nvidia action.
Suzanne Frey, director of Alphabet, is a member of the board of directors of Motley Fool’s. Randi Zuckerberg, former Director of Development of the Facebook and Sister of the CEO of Meta Platforms, Mark Zuckerberg, is a member of the board of directors of Motley Fool’s. Adam Spatacco At positions in Alphabet, Meta Platforms, Microsoft and Nvidia. The Motley Fool has positions and recommends Alphabet, Meta Platforms, Microsoft and Nvidia. The Motley Fool recommends the following options: Long January 2026 Calls $ 395 on Microsoft and Court January 2026 405 $ calls Microsoft. The Word’s madman has a Disclosure policy.