By Anthony Di Pizio
Publication Date: 2026-04-07 18:53:00
The S&P 500 index has plunged almost 9% from its January all-time high amid ongoing geopolitical tensions in the Middle East. With oil prices soaring, Wall Street is worried about a slowdown in the U.S. economy and in corporate earnings.
Some individual tech stocks have declined even more sharply than the S&P 500, including Nvidia (NVDA 1.11%) which is currently down 20% from its record high. While the company could be impacted by economic uncertainty in the short term, demand for its data center chips is likely to remain rock-solid in the medium and long term, given their critical role in artificial intelligence (AI) development.
Nvidia stock is currently cheaper than the S&P 500 on a forward price-to-earnings (P/E) basis for the first time in 13 years, presenting investors with a potential once-in-a-decade buying opportunity. Here’s why they might want to grab it with both hands.
Image source: Nvidia.
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Nvidia’s primary data center chips are called graphics processing units (GPUs). They are designed for parallel processing, which means they are great at handling multiple tasks simultaneously, making them ideal for data-intensive workloads like AI training and AI inference.
Its current flagship GPU is the GB300, which is based on the company’s Blackwell architecture. The GB300 offers up to 50 times more performance (in certain configurations) than Nvidia’s original AI data center GPU, the H100, which was launched in 2022. This highlights how fast…
