Is Nvidia Stock Worth Buying The Dip?

You can buy Nvidia stock on the cheap right now, but should you? That’s the question many investors have been asking since the once-unstoppable NVDA stock fell to its lowest P/E ratio since early 2019.

Get your answer now with this look at what happened to Nvidia, factors that could spark a rebound and risks ahead for the company.

Why Has Nvidia Stock Dropped?

Nvidia stock gained 168% in the first 10 months of 2024 as investors bought up shares to get their piece of the AI boom. The stock price rally peaked in early November and then turned south when investors got nervous about lingering high interest rates.

The negative trend for Nvidia deepened in 2025 as a series of headlines prompted many to question the chip designer’s growth outlook:

1. DeepSeek. In January, Chinese AI company DeepSeek released an AI chatbot that requires relatively low computing power. DeepSeek’s innovation, if replicated, could mean lesser demand for Nvidia’s premium, high-powered hardware.
2. Tighter export restrictions. In February, Bloomberg reported the Trump administration may tighten existing restrictions on semiconductor exports to China.
3. Tariffs. In March, President Trump ramped up the tariff commentary, culminating with the “Liberation Day” announcement of sweeping reciprocal tariffs. Semiconductors are excluded from the latest tariff plan, but that could change. Although Nvidia CEO Jensen Huang said in a press briefing that he doesn’t expect a big tariff impact, investors were still spooked.
4. Global economic uncertainty. Even prior to the Liberation Day announcements, investors were becoming increasingly nervous about the tariff rhetoric from the U.S. presidential administration. The investing climate has become increasingly volatile as a result. Growth stocks, Nvidia included, have been hit as investors seek shelter in safer assets.

January through early April, Nvidia stock is down almost 30%.

Factors Which May Impact A Nvidia Rebound

The AI buildout has driven Nvidia’s growth in recent years. Nvidia’s AI data center sales are still increasing, but the pace has slowed and competition could become a factor soon. A full Nvidia rebound will likely require a different kind of breakthrough. Three opportunity areas to watch are robotics, PC gaming and autonomous driving.

Robotics

Huang recently valued the opportunity in AI-powered robotics and automation at $50 trillion. The CEO says these technologies will “transform manufacturing, logistics, healthcare and other industries.” Nvidia has two platforms, Isaac and Cosmos, that support robotics and other types of physical AI.

Cloud Gaming

Nvidia’s GeForce Now service uses the cloud to upgrade the gaming experience on any PC. Gamers connect their PC gaming accounts at Steam, Epic Games Store or Ubisoft Connect to GeForce Now for added hardware support—essentially turning any device into a gaming PC.

Nvidia announced expanded GeForce Now device support and capabilities at the 2025 CES trade show.

Autonomous Driving

Nvidia’s automotive line-up includes a platform for in-vehicle computing plus solutions for training AI driving models and simulating environments for testing. In 2025, the company announced automotive AI partnerships with Toyota, Aurora, Continental, GM, Gatik and Torc.

Nvidia expects its automotive business to deliver fiscal 2026 revenue of $5 billion, up from $1.7 billion in fiscal 2025.

Risks And Challenges To Nvidia

Alongside these opportunities, Nvidia faces some challenges. Regulatory changes, cheaper AI solutions and in-house chip development top the list.

Regulatory Changes and Export Bans

Changing Trump administration policies could pressure Nvidia’s stock price. Reciprocal tariffs, even with semiconductors excluded, could raise input costs and reduce margins.

While Huang seems unbothered by the trade war developments, he also said he could move manufacturing to the U.S. if needed. That is a long-term solution. Unfortunately, growth investors are not known for their patience. A transition to domestic manufacturing would impact the NVDA stock price.

More concerning than tariffs is the potential for export bans to China and import bans by China. Reports indicate Trump has considered tighter limits on chip sales to China. Meanwhile, Chinese regulators are discouraging sales of Nvidia’s H20 chip—a product designed for export to China—because it doesn’t meet efficiency standards, according to the Financial Times.

Cheaper AI Solutions

The rollout of DeepSeek caused angst for Nvidia shareholders. At issue was the $5.6 million total investment quoted by the AI app’s creator. The price tag seems tiny next to, say, Microsoft’s $80 billion AI budget for fiscal 2025. The discrepancy prompted questions about Nvidia’s growth outlook. If DeepSeek can do it, why can’t big tech spend far less on Nvidia’s AI hardware for the same results?

Some experts have said the $5.6 million number from DeepSeek is misleading. Still, there will be a time when cost-efficiency enters the AI fray. That could create space for competitors to chip away at Nvidia’s AI dominance.

In-House Chip Development

Big tech companies don’t want Nvidia to be the only AI chip game in town. It’s too risky. They are mitigating that risk by developing in-house solutions. Alphabet (GOOG) recently introduced a collection of lightweight open-source AI models, Meta (META) is testing an AI chip and OpenAI has nearly finalized the design of its AI chip.

These solutions will reduce Nvidia’s business with existing customers over time. Nvidia will have to improve on performance and price as a result.

Is Nvidia Stock A Buy During This Dip?

Nvidia is an attractive, long-term buy right now despite regulatory and competitive challenges. The stock may not return to its pre-Trump growth rates, but it is an innovative, healthy company with a forward-thinking leader—and those qualities usually create shareholder value over time.

Like many growth stocks, NVDA is volatile. Its per-share price can fall as quickly as it rises. You can see that dynamic in play for NVDA stock since it went public in 1999. So this stock is best suited for hardy, patient investors and those who already own NVDA and want to reduce their average cost basis. If you don’t feel quite ready for NVDA, see this list of best stocks for 2025 for more investing ideas.

Bottom Line

Nvidia is down nearly 30% this year as investors worry about tariffs, trade bans and lower-cost AI models. But the chip designer is not down for the count. Nvidia has continued AI growth, plus opportunities in robotics, PC gaming and autonomous driving that make it an attractive buy at the current valuation.

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