The world’s leading AI chipmaker is hitting some bumps in the road as it finishes a difficult start to the year. In the past week, Nvidia stock (NVDA) is trying to shake off a rare two-quarter losing streak. This slump has seen shares drop about 6.5% over the last three months. Even though the stock jumped over 5% on Tuesday, this is still the longest period of back-to-back quarterly losses for the company since late 2022.
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Trade NVDA with leverageHistory Predicts a Fast Recovery for Nvidia
While the recent drop in the stock price has made some investors nervous, past data suggests the sun could be about to break through. Over the last ten years, whenever Nvidia has suffered a losing streak of two months or more, it has averaged a 12% gain in the very next month.
This pattern of snapping back has been a regular part of Nvidia’s journey from a gaming company to one of the world’s most valuable firm. Analysts believe that the current dip is driven more by market panic than by any actual problem with the company. With the stock price currently sitting around $174, a typical historical recovery could see it climbing back toward the $195 level very soon.
Nvidia Adapts to the New Phase of AI
The reason for the recent pressure on the stock involves a shift in how the world uses artificial intelligence. For the last two years, Nvidia led the training phase, where massive models like OpenAI‘s ChatGPT were built. Now, the industry is moving into inference, which is the process of actually running those models for everyday users.
To stay on top, Nvidia is moving into custom hardware and AI agents. A major $2 billion partnership with Marvell Technology (MRVL) was announced this week to help build these specialized systems. This deal allows customers to build custom chips that still work perfectly with Nvidia’s software, ensuring the company stays at the center of the AI boom even as needs change.
Global Tensions Slow Down NVDA Stock Gains
The recent slump was not just about AI; it was also about the world outside of tech. Tensions in Iran and a general market shift, where investors move money out of tech and into more stable areas, have kept the price from reaching its January highs of over $190.
Despite these hurdles, the company’s financial health is still massive. Nvidia recently reported record full-year revenue of $215.9 billion, a 65% increase from the year before. As long as AI demand keeps growing, experts like Nvidia’s CEO Jensen Huang believe the world will continue to build AI factories. These are data centers that manufacture intelligence rather than just storing files. While rivals like AMD (AMD) and Google (GOOGL) now make their own chips, Nvidia still provides the most popular hardware and software that these factories run on.
Is Nvidia Stock Good to Buy Now?
Turning to Wall Street, the analysts’ consensus rating for Nvidia stock (NVDA) is a Strong Buy, based on 41 Buys, one Hold, and one Sell rating issued over the past three months. With that comes an average 12-month NVDA stock price target of $273.34, representing a potential 56.7% upside for the shares.
