Despite a growing backlog and impressive revenue growth, Nvidia stock (NASDAQ: NVDA) is not immune to market-wide pullbacks.
NVDA shares entered a prolonged period of range-bound trading in October of 2024, when the $140 mark was first breached, albeit briefly. The stock traded between $130 and $140 without a clear trend present until an all-time high (ATH) of $149.43 was reached on January 6.
This did not signal the start of an uptrend, however — in late January, the sudden emergence of DeepSeek as a worthwhile competitor shook up the stock market, and Nvidia shares experienced significant losses. Just as prices started recovering, the United States’ tariff implementations injected uncertainty into the markets.
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On Friday, March 28, NVDA shares closed at $109.67, a figure equating to a 18.33% loss since the start of the year. However, by press time on March 31, Nvidia stock reached prices as low as $105.82 in the pre-market trading session, bringing YTD losses up to 21.20%.
Accordingly, a $1,000 investment made in the semiconductor titan at the beginning of the year would now be worth approximately $788, with an absolute loss of $212.
Thus far in 2025, NVDA has underperformed the wider market, as the S&P 500 benchmark index has receded by 4.90% in the same period of time. So, is Nvidia’s bull run over — or is this simply an opportunity to buy shares at a discount?
Nvidia stock is still a solid long-term investment — but…
Despite the fact that investing in one of the most promising publicly-traded businesses at the start of the year would have left your investments in the red thus far, there are a few ‘big picture’ points to consider.
First is the fact that pullbacks are, unfortunately, a fact of life. As hard as recent market conditions have been on Nvidia stock, the losses thus far incurred are not a result of any sort of weakness in the chipmaker’s core operations.
Moreover, market sentiment hasn’t shifted regarding the Jensen Huang-led venture. At present, analysts maintain an almost unanimously bullish appraisal when it comes to NVDA — and their average 12-month price forecasts imply significant upside.
Perhaps even more importantly, Wall Street researchers haven’t really changed their coverage much compared to February — a clear sign that the theses underpinning their bullish outlooks haven’t shifted.
Nvidia insiders aren’t jumping ship yet
Lastly, although there has been an uptick in insider selling, on the whole, key personnel are offloading relatively small amounts of NVDA shares, especially when compared to other high-flying artificial intelligence (AI) businesses like Palantir, for instance.
With all that being said, it’s clear that wider macro trends are the dominant force that has been driving price action as of late. Nvidia could very well crash below $100, seeing as how a bear market appears to be in striking distance.
Once all is said and done, the best play might very well be to wait and see. While NVDA stock is currently trading at an attractive forward price-to-earnings (PE) ratio of 26.61, further losses could provide investors with an even more enticing entry point.
Featured image via Shutterstock
