Should You Snap Up Nvidia Stock During the 'Liberation Day' Dip?

For the better part of the past three years, chip giant Nvidia (NVDA) Nvidia has attracted significant attention as it stands out as possibly the largest recipient of the surge in interest towards artificial intelligence (AI). After experiencing an astounding increase of 1,371% over half a decade and maintaining a leading role in the sector of AI chips, Nvidia continued to demonstrate remarkable momentum without indicating any deceleration.

That is, until a newcomer from China named DeepSeek And President Donald Trump’s tariff strategy unexpectedly brought the Nvidia growth trajectory to a stop. With shares now down 18% year-to-date, could this spell trouble for the Nvidia investment?

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About Nvidia Stock

NVIDIA focuses on manufacturing GPUs, artificial intelligence platforms, and cutting-edge computing solutions. The firm caters to multiple industries such as gaming, data centers, automobiles, and professional visualizations. Additionally, NVIDIA’s CUDA programming framework has played a crucial role in progressing AI research and implementations.

Given a market cap of $2.6 trillion, Nvidia ranks among the globe’s most highly valued corporations.

Consequently, the recent decline in the company's share price has emerged as an excellent chance for investors who previously missed out on Nvidia's upward trajectory and for those seeking to boost this stock's presence in their investment mix. Here’s why: let’s delve deeper into the details.

Basics: Rock-Solid Foundations

Nvidia has arrived at a point where simply surpassing Wall Street’s expectations may not suffice for the company anymore. They will need to achieve something "extraordinary."

This is because, even though Nvidia exceeded forecasts for both income and profits in the last quarter of its fiscal year 2025, the company’s stock has encountered selling pressure throughout this year. This indicates that while the figures were impressive, investors may have been expecting a considerably more outstanding outcome.

The quarterly revenue reached a peak of $39.3 billion, which represents a significant surge of 78% compared to the corresponding quarter last year. Notably, within these figures, Nvidia’s data center division showed exceptional performance with a remarkable 93% rise year over year, totaling $35.6 billion, highlighting its crucial contribution to the firm's expanding success path.

Earnings per share increased by 71% compared to the previous year, reaching $0.89, marking nine consecutive quarters where Nvidia exceeded analyst expectations. However, not every metric followed this positive trend. The gross margin decreased to 73.5%, falling from 76.7% in the corresponding period last year, suggesting that intensifying competition might be beginning to have an impact.

Regarding cash production, NVIDIA reported strong outcomes. The net cash flow from operations increased to $16.6 billion for the quarter, up from $11.5 billion in the corresponding period the previous year. At the end of the quarter, the firm boasted an impressive $43.2 billion in cash holdings and held zero short-term debt, indicating a solid liquidity stance that maintains strategic maneuverability.

Outlook Stays Strong

In reference to my earlier message analysis , the continuous increase in capital expenditures towards AI infrastructure by major corporations like Microsoft (MSFT) , Amazon (AMZN) , Meta (META) , and Google (GOOGL) Is anticipated to sustain the current high level of demand for Nvidia’s cutting-edge processors. A key driver behind this surge is the increasing requirement for generative artificial intelligence systems—where Nvidia holds a commanding market position. Leading this charge are their Blackwell and H100 GPUs, pivotal in facilitating intricate training and inferencing tasks spanning various sectors such as hyperscale AI clusters, corporate uptake, and national-level infrastructures. Notably, the impressive $11 billion revenue generated from the Blackwell platform within its debut quarter highlights Nvidia’s overarching dominance both in semiconductor manufacturing and in establishing the backbone for complete AI computational ecosystems.

At the GTC 2025 At the event, Nvidia unveiled further initiatives aimed at strengthening their leadership position via the launch of advanced networking switch designs for the upcoming generation. These advancements mark a significant step up in terms of bandwidth potential. By reducing energy wastage, they enable large groups of GPUs to work together with remarkable coordination and effectiveness.

With its wide-ranging incorporation of software, networking, silicon, and cloud services, Nvidia is progressively seen as the core foundation for AI-powered computing. The firm has moved well past just supplying semiconductors; it is currently constructing and managing the central framework driving the AI transformation.

In general, despite demonstrating impressive growth figures over the past few years, analysts continue to predict that NVIDIA’s revenues and profits will expand significantly more rapidly than those within the broader market. The anticipated future growth rates for these metrics stand at 60.38% for revenue and 66.24% for earnings, markedly higher than the sector averages of 6.68% for revenue and 10.73% for earnings.

Views of Analysts on NVDA Stock

Therefore, experts consider Nvidia shares as a "Strong Buy" with an average projected price of $175.05 per share, indicating approximately 62% growth potential from today’s prices. Among 43 financial advisors evaluating this stock, 37 recommend buying strongly, two suggest a moderate buy, and four advise holding onto their positions.

Upon the release date, Pathikrit Bose did not hold (directly or indirectly) any stakes in the securities mentioned within this article. This piece contains information and data intended purely for informative reasons. Please refer to our Disclosure Policy for additional details. here .