By Adria Cimino, The Motley Fool
Publication Date: 2026-04-26 17:50:00
Buying shares of Nvidia (NASDAQ: NVDA) represented a clear path to a stock market win in recent years. The artificial intelligence (AI) boom has made the company’s AI chip systems some of the most sought-after products on the planet — and this has translated into explosive earnings growth and a soaring stock price. Over the past three years, for example, revenue and the stock price each jumped more than 200%.
But in the first quarter of this year, Nvidia met headwinds. They weren’t specific to the company, but instead represented a generally difficult environment for growth stocks, particularly AI players. As tech giants poured billions of dollars into AI, investors began to worry that the revenue opportunity might fall short of expectations. And conflict in Iran, along with its impact on oil prices and the transport of goods through the region, added to uncertainties.
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All of this weighed on AI stocks, including shares of AI chip giant Nvidia. But over the past few weeks, tensions lifted. Investors have felt more confident about a potential resolution of the conflict in Iran. And earnings reports and other comments from tech giants show that AI demand isn’t wavering, suggesting the revenue opportunity remains solid. Against this backdrop,…
