Nvidia Stocks Dips: Buy or Sell?

Nvidia, one of the most contentious tickers on the stock market, has attracted attention this week for its volatile start.

As of noon 12/16, Nvidia fell by almost 3% in share price, now hovering at more or less $130 per share. Investors sold off from the company following a mixture of bad news for the chipmaker while good news for its competitors. Broadcom, an emerging rival of Nvidia, surpassed $1 trillion in market cap last week, posing a significant risk to Nvidia. Many companies upset over high prices of Nvidia chips have moved to Broadcom for their chips, mainly their new AI chips.

Broadcom has also announced Nvidia-like investments in artificial intelligence which could put Blackwell in a dangerous position. The chip, which already is not experiencing a surge in sales, will have its consumer base stripped away partially by Broadcom and other chipmakers which may manufacture cheaper chips.

So, with Nvidia reaching its lowest point in a few weeks, is it a strong buy? The answer is yes. While Nvidia has experienced a short-term decline as a result of its competitors, its rivals like Broadcom don't have the same established presence in the chipmaking industry that Nvidia has. Furthermore, Nvidia's chips are still consistently leading its competitors in revenue generation.

Additionally, Nvidia is expected to continue surging over the next few months. Its previous earnings report once again beat expectations, and with this trend most likely continuing, the stock will rally.

So while the stock right now seems like a bad choice, ultimately it may prove to be a stock with significant profit margins when the time is right to buy and sell. It is still crucial to watch the stock if any extraneous situations emerge.