Investors have faced limited opportunities to purchase shares of the leading artificial intelligence company Nvidia (NVDA -5.07%) during significant market dips in recent years. However, current market conditions present a rare chance. The recent downturn in Nvidia’s stock is the most substantial decline from a recent peak observed in the past two years. As it stands, shares are down 20% year-to-date and 28% from their January high, raising questions among potential investors.
There are numerous factors that can lead to a decrease in stock prices. These include company-specific news, shifts in investor focus from one sector to another, and general market anxiety regarding risk. For Nvidia, it appears to be a mix of these elements at play. The pressing question for investors is whether this presents a unique opportunity to enhance future gains or if it signals a potential end to Nvidia’s impressive outperformance in the tech sector.
Understanding the Potential Impact on Nvidia’s Sales Growth
Despite the recent stock price decline, Nvidia shares have skyrocketed approximately 380% over the past three years. This remarkable rise was largely fueled by the company’s cutting-edge semiconductor chips, which have become essential for businesses eager to enhance their computing capabilities in data centers designed for developing and training AI models.
Nonetheless, recent apprehensions regarding export restrictions have raised significant concerns among investors about Nvidia’s potential sales growth. The U.S. government has imposed limitations on the export of certain high-performance chips to China, citing national security reasons. This action inevitably restricts the sale of Nvidia’s most advanced graphics processing units (GPUs), further complicating the sales landscape.
Additionally, worries have been amplified by reports that China’s DeepSeek has developed a large language model (LLM) at a much lower cost, stirring fears of a possible decline in spending on AI infrastructure. Investors are now closely monitoring how Nvidia will navigate these challenges and whether it can sustain its growth trajectory amidst these headwinds.
Seizing the Opportunity: Nvidia Stock Now Available at a Discount
While many of the largest technology firms have affirmed their commitment to substantial investments in data centers, the current sell-off in Nvidia stock offers a golden opportunity for long-term investors. This downturn can be viewed as a strategic buying moment, enabling savvy investors to capitalize on discounted shares.
NVDA data by YCharts
The stock has dropped nearly 30% since its January peak, prompting astute investors to approach this situation as they would any significant purchase in life: buy quality when it’s on sale. It’s not merely the substantial drop from previous highs that makes Nvidia appealing; the shares are now looking increasingly attractive based on various common financial metrics.
Taking a Necessary Pause for Sustained Growth
Indeed, sales growth in Nvidia’s data center segment has shown signs of slowing. The company anticipates approximately 65% year-over-year sales growth in the current quarter. While this is impressive growth, it pales in comparison to the staggering 115% increase recorded in its fiscal year 2025, which ended on January 26.
Furthermore, Nvidia continues to introduce a steady stream of powerful new platforms. The rollout of its Blackwell architecture has now reached full production, with plans in place for the upcoming release of the Rubin GPU and central processing unit (CPU) package designed for AI training and inference, expected to debut in 2026.
The recent share pullback appears to be a necessary breather rather than a cause for alarm. As is common with rapidly growing stocks, investors have historically driven Nvidia shares higher in anticipation of its future growth. However, the current forward price-to-earnings (P/E) ratio now hovers around 24, which is notably below the 10-year average P/E of 30 for the Nasdaq Composite index.
Nvidia’s growth potential extends well beyond its data center segment. The gaming division alone generated over $11 billion in sales during the last fiscal year, and the robotics and automotive segments have also been on a steady growth trajectory. This upward momentum is expected to continue as advancements in humanoid robots and autonomous driving technologies become more prevalent in the market.
Investors now have the chance to acquire shares in an exceptional company at a remarkably fair price—an opportunity that savvy investors should not overlook.
