By Neil Patel
Publication Date: 2026-01-27 09:49:00
This monster stock has been taking a breather over the last three months.
Nvidia (NVDA 0.65%) has been one of the biggest beneficiaries of the ongoing artificial intelligence (AI) race. Its powerful data center graphics processing units, which have incredible market share, help support AI training and inference. This has led to robust demand, which has propelled shares up 1,230% in the past five years (as of Jan. 22).
This top AI stock is trading down, off 11% from its peak. That has some investors wondering if the incredible share price runup is petering out. It has others thinking this might be a great time to buy in, as shares are trading at a discount and they will eventually continue their upward climb.
Who’s right? Should you buy the dip on Nvidia?
Image source: Nvidia.
Nvidia is betting on the AI infrastructure layer
OpenAI’s ChatGPT, Alphabet‘s Gemini, Anthropic’s Claude, Perplexity, and others get a lot of attention because they are user-facing AI chatbots that have basically set off the AI age. But digging a bit deeper and looking upstream shows that Nvidia is the winner, given that it operates at the AI infrastructure layer. Viewed in this light, the business is a pick-and-shovel investment opportunity.
It’s impossible not to come away awestruck with Nvidia’s financial performance. Revenue increased 62% year over year to $57 billion in Q3 2026 (ended Oct. 26 last year). Analysts expect 51% and 28% jumps in fiscal 2027 and fiscal 2028, respectively, based on…
