Nvidia stock’s been getting cheaper. Time to buy? - Yahoo Finance UK

NVIDIA has experienced an extraordinary rise over recent years, with its stock price up 1,001% over five years. However, this surge has led to an elevated valuation, making it less attractive for inve... Read original →

NVIDIA’s 13% stock pullback reflects valuation recalibration, not fundamental deterioration. Technologically, its 3nm AI chips rely heavily on ASML’s EUV tools and foundry capacity in Taiwan, China—any geopolitical escalation risks disrupting supply chains. Regulatory pressures, especially U.S. export controls on advanced AI hardware, force NVIDIA to develop region-specific, downgraded SKUs, inflating R&D and inventory costs. Competitively, AMD and Intel are aggressively targeting inference and edge AI with cost-optimized alternatives, while Chinese GPU startups gain traction under state-backed localization mandates. Over the next 12–24 months, even if generative AI capex moderates, NVIDIA’s CUDA moat should sustain premium margins—but sustaining a sub-25x P/E requires demonstrable diversification beyond hyperscalers. The current dip offers strategic entry potential, yet supply chain fragility remains a near-term volatility trigger.