The Nasdaq Index is now in correction territory, which means it is down more than 10% from its all-time high. While this seems important, 10% corrections are made almost every year, so it is something that investors must understand often.
Because this happens frequently, investors should not panic. Instead, it’s time to start looking for bargains that might hit harder than the wider market. The biggest value I buy now is Nvidia (NASDAQ: NVDA)one of the best artificial intelligence (AI) is there. In writing, it’s down 30% from an all-time high of 30%, which looks like a small amount of bargaining.
NVIDIA makes graphics processing units (GPUs) for difficult computing tasks. Because they can process multiple computations in parallel, they are perfect for tasks like AI training. Although there are other competitors in the GPU space, NVIDIA’s choice is superior in many ways and has become a clear choice in the field.
As companies invest billions in their AI infrastructure, NVIDIA has become a major beneficiary of that spending, which has led to its stock higher in the past few years. NVIDIA shares have risen 922% since the beginning of 2023. It’s incredible to run, and it’s one of the main reasons why the stock is selling so aggressively. Investors want to make profits before they disappear, so this sell-off disproportionately affects NVIDIA. However, many tailwinds will boost NVIDIA, and investors need to take advantage of the biggest selloffs the stock has seen since it started running in 2023.
2025 is designated as a record year for capital expenditures for many large tech companies. The vast majority of this fee will be spent building AI computing power, which will benefit NVIDIA. Additionally, NVIDIA’s latest chip architecture, Blackwell, is starting to become more extensive, meaning some customers may use more advanced versions to upgrade their existing GPUs.
These are all positive effects on NVIDIA’s stock, which adds to Wall Street’s forecast that NVIDIA’s revenue will rise 56% to $204 billion this year. However, the biggest warning here is that it will require large tech companies to continue to spend a lot of money to achieve this forecast. There are concerns that economic weaknesses brought about by the trade war could lead to spending cuts in these AI high-scoring standards, which would hurt Nvidia.
