Is This AI Chip Stock Poised for a Strong Recovery Before Year-End?

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Nvidia’s Stock Performance Outlook for December

Nvidia’s stock (NASDAQ: NVDA) has experienced a significant decline of approximately 17% since its peak in October, closing at around $206.69. Historically, Nvidia shares have seen surges exceeding 8.8% in each of the last three Decembers, largely driven by broader market uptrends—though such trends seem unlikely this year due to slower market growth.

In December 2022, Nvidia’s stock dropped 11.2% before bouncing back with an 8.8% surge. This year, experts indicate that major company-specific announcements will be crucial for any potential recovery. Nvidia recently reported record revenue of $57 billion with significant growth in sales projected for the fourth quarter, but it would need to rise by about 17.4% to return to its October closing price, an increase that would add nearly $700 billion in market value.

The S&P 500’s lackluster performance, with only a 1.9% rise in Q4, coupled with no further Federal Reserve interest rate cuts this year, makes it unlikely for Nvidia to experience a significant year-end increase similar to past years. Investors are advised to remain cautious about Nvidia’s stock in the immediate future, but the 2026 outlook appears promising.

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