Nvidia Stock Has Pulled Back: Time to Buy the Dip?
Shares of graphics and artificial intelligence (AI) chipmaker Nvidia (NASDAQ: NVDA) have pulled back meaningfully recently. After soaring from a share price of under $500 at the beginning of the year to a 52-week high of $974, shares have retreated nearly 11% as of this writing. Given both the stock and (more importantly) the business's underlying momentum, some investors may be debating about whether this is a good time to buy shares.
Though there's no denying Nvidia's momentous sales and earnings growth as of late, investors may want to think twice before they buy this dip. Sure, there's always a chance shares could rocket higher from here and never return to this level, but the growth stock's premium valuation and its enormous gain of more than 200% over the past year also make a good case for increased risk for shareholders going forward. In this case, it may make sense for investors to take the time to appreciate the stock's heightened risk.
Though Nvidia's stock has soared, bullish shareholders would be quick to point out that its revenue and earnings have soared, too. Nvidia's fiscal fourth-quarter revenue rose 265% year over year, and its total fiscal 2024 revenue increased 125%. Earnings per share for these two periods rose 765% and 586%, respectively. This momentum has been primarily driven by Nvidia's data center business, which saw fourth-quarter and full-year revenue rise 409% and 217%, respectively.
Source Fool.com
