By Adam Spatacco
Publication Date: 2026-01-19 17:00:00
Key Points
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Nvidia stock experienced an intense sell-off during the first several months of 2025.
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The selling pressure was driven more by emotions than by genuine problems with the underlying business.
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Nvidia is trading near its cheapest valuation in well over a year, even as it continues to generate impressive revenue and earnings growth.
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When it comes to the artificial intelligence (AI) industry, no company is watched as closely as Nvidia (NASDAQ: NVDA). Over the last three years, the company’s graphics processing units (GPUs) and its CUDA computing platform have become central pillars supporting generative AI development.
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Nvidia has become so influential in the AI realm that its quarterly earnings reports have essentially turned into a yardstick for the overall health of the technology industry. While shares of Nvidia have soared by roughly 1,000% since the AI revolution really took shape — making it the most valuable company in the world — the stock is doing something pretty interesting right now.
Image source: Nvidia.
Taking a trip down memory lane
You may recall that Nvidia got off to a rough start in 2025. Around this time last year, a Chinese start-up called DeepSeek debuted its R1 chatbot, which quickly emerged as a rival to popular large…