By Daniel Sparks
Publication Date: 2025-12-15 04:21:00
The stock has become more attractive recently. But have shares fallen enough to make them a buy?
Nvidia (NVDA 3.30%) stock has cooled off recently. After hitting a 52-week high of $212.19 in late October, shares closed out last week at $175.02 — a decline of about 17%. This comes as sentiment around AI (artificial intelligence) has become less forgiving as investors demand clearer returns on the spending and look for evidence that the current AI boom can keep chugging along for the foreseeable future.
Nvidia, which sells the market-leading graphics processing units (GPUs) that power the data centers used to train and run AI models, has been a major beneficiary of the AI boom. But this also means that the stock could suffer if demand for AI computing slows.
However, despite sentiment toward AI turning more negative recently, demand for AI chips remains extremely robust. So, is the stock’s recent sell-off a buying opportunity?
Image source: Getty Images.
Demand is still rising
A glance at Nvidia’s fiscal third-quarter results certainly doesn’t indicate that the AI boom is cooling off.
“Blackwell sales are off the charts, and cloud GPUs are sold out,” Nvidia CEO Jensen Huang said in the company’s fiscal third-quarter earnings release.
The tech company‘s fiscal third-quarter revenue rose 62% year over year to $57.0 billion. That was faster than the 56% year-over-year increase Nvidia reported in fiscal Q2. This marked a return to accelerating growth after fiscal Q2’s…
