Nvidia Is Sinking Today -- Is the Stock a Buy?
Nvidia (NASDAQ: NVDA) stock is heading lower in Tuesday's trading. The company's share price was down 1% as of 1 p.m. ET against the backdrop of a 0.5% decline for the S&P 500 index and a 1.1% decline for the Nasdaq Composite index. The artificial intelligence (AI) leader's stock had been down as much as 4.5% earlier in trading.
Nvidia stock is slipping today as investors consider the potential impacts from new tariffs, new Chinese chip sanctions, and other pressures. The tech giant is also due to report its fourth-quarter report after the market closes tomorrow, and investors are feeling some jitteriness when it comes to valuation profiles for AI stocks.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
Is Nvidia stock a buy right now?
Nvidia's fourth-quarter release tomorrow is poised to be one of the biggest stock market events in 2025 so far. The average analyst estimate calls for the business to post net income of approximately $21.1 billion on sales of over $38 billion. The company's forward guidance will also be under the microscope and treated as a key indicator for overall growth in the AI market.
Investors are on the edge of their seats. A recent report that Microsoft is cutting back on some of its data center expansion plans has raised growth concerns, and Nvidia's Q4 report has taken on even more significance following the market disruption caused by the DeepSeek R-1 model in July.
To summarize, there are a lot of catalysts on the near horizon that could cause significant volatility for Nvidia stock. Accordingly, the stock probably isn't a good fit for investors without high risk tolerance right now.
On the other hand, the company continues to occupy a leadership position in the graphics processing unit market at the heart of the AI revolution, and it's still in the early stages of expanding its presence in categories including software, processing services, and robotics. The company's advantages in key artificial intelligence categories are significant, and these technologies still look poised for massive long-term growth. Investors should move forward that Nvidia stock has the potential to be volatile in the near term, but it looks like a worthwhile buy-and-hold investment on recent pullbacks.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
- Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $337,818!*
- Apple: if you invested $1,000 when we doubled down in 2008, you’d have $46,848!*
- Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $533,073!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of February 24, 2025
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
