Nvidia stock dropped 35% from its high, but history suggests it could soar 305% next.

From Nasdaq: 2025-04-10 04:15:00

Nvidia (NASDAQ: NVDA) saw a 1,000% surge in stock price between November 2022 and January 2025 due to the AI boom. Despite a 35% decline following trade tensions, history shows the stock could soar 305% in the next two years. Nvidia’s GPUs are crucial in AI and data center workloads, giving it a strong market position.

Investors should consider Nvidia’s past performance, including three drawdowns exceeding 35% in the last decade. Each time, the stock rebounded and returned an average of 305% in the following two years. Nvidia dominates the AI accelerator market, with opportunities in various applications like autonomous vehicles and robots, ensuring future demand for its products.

While Nvidia faces competition from ASICs, it maintains an edge with its CUDA software tools and superior performance per unit cost. Analysts predict Nvidia’s GPUs will still account for over 80% of AI accelerator sales by 2030, driving revenue growth. With a projected 38% annual earnings increase through fiscal 2027, Nvidia’s current valuation looks cheap, making it a worthwhile investment.

Despite a 35% drop from its peak, Nvidia has a history of bouncing back stronger. Patient investors stand to benefit from the company’s growth potential and undervalued stock. With past success in issuing “Double Down” alerts for top-performing stocks like Nvidia, Apple, and Netflix, there is a second chance for lucrative opportunities with select companies.



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