NVDIA a market leader in AI chips and GPU.

From a broader perspective, NVIDIA’s fundamentals are strong: it’s a leader in the AI boom, with revenue growth outpacing rivals and a market cap around $3.29 trillion. Yet, its valuation is lofty, and corrections like this aren’t uncommon for a stock that’s tripled in value over the past year. The question is timing—buying after a dip could be a bargain if you believe in the long-term AI narrative, but short-term volatility could persist if macroeconomic pressures (e.g., rising Treasury yields) or competition intensify.

Critically, the “buy” case leans on NVIDIA’s unmatched position in AI infrastructure, but the bearish view warns of overvaluation and potential stumbles in execution (e.g., Blackwell delays). If you’re a long-term investor, the correction might look like an entry point given the analyst optimism. If you’re trading short-term, technical signals suggest caution until clearer support levels emerge—possibly around $129 or lower if it breaks down further.