Nvidia Is Down 26% From Its All-Time High. Here's Why It's Not Time to Panic.
While it's no fun watching your portfolio drop during a stock market sell-off, these things happen occasionally. However, individual stocks (especially high-growth ones) are disproportionately affected, which may cause investors in stocks like Nvidia (NASDAQ: NVDA) to panic.
I think that's a knee-jerk reaction, and investors need to understand that while Nvidia may see a drop in demand (just like many other companies), there's still an overwhelming tailwind blowing in Nvidia's favor, and now isn't the time to sell; it's time to buy.
Nvidia was one of the most dominant stocks in the market from 2023 to 2024. It became the poster child for the AI arms race because it sells graphics processing units (GPUs), which are perfectly suited for tasks that require vast computing power like AI models. Nvidia's clients built up massive data centers, some filled with more than 100,000 GPUs, but that's still not enough.
Source Fool.com
