Nvidia Stock: An Opportunity Amid Market Volatility

The recent market turmoil has increased anxiety among investors. A volatile market can create uncertainty as you watch your portfolio’s value fluctuate. However, for those who maintain composure and focus on the fundamentals, such conditions may present unique opportunities.

Over the past two years, some stocks have surged to remarkable new heights. Nvidia (NASDAQ: NVDA) stands out as a prime example. Many investors might feel they’ve missed out as the stock has soared. Nevertheless, even amidst the recent market correction, Nvidia shares have risen more than 400% over the past three years. While perceptions of Nvidia as an expensive asset might prevail, there are compelling arguments suggesting that now is a prime opportunity to invest in Nvidia Stock.

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Nvidia’s Positive Prospects

Regardless of potential trade wars or rising tariffs that may hinder economic growth, Nvidia’s business model offers resilience. The demand for its AI GPU chips, software solutions, and related technologies is strong and expected to remain robust for the foreseeable future. The company is also set to benefit from advancements in robotics and driver assistance technologies.

Investors currently have the opportunity to purchase Nvidia shares at a valuation that hasn’t been seen in over a year. Market fears have driven the price-to-earnings (P/E) ratio down to below 25 based on this year’s earnings estimate.

NVDA PE Ratio (Forward) data by YCharts

If Nvidia’s stock price remains stagnant, this valuation will become even more attractive as sales are expected to grow. However, delaying investment could cause potential buyers to miss out. If catalysts arise to spur sales growth, investors may flock back to Nvidia Stock.

While adopting a gradual approach to investing in Nvidia during these uncertain times is advisable, now is the right moment to start. Amid market fear, Warren Buffett’s advice to be greedy when others are fearful could apply here—particularly regarding Nvidia Stock while its valuation is advantageous.

Is Investing $1,000 in Nvidia Worth It?

Before making any decisions about investing in Nvidia Stock, consider the following:

The Motley Fool Stock Advisor analyst team has recently identified what they consider the 10 best stocks to buy right now, and Nvidia was not included. The stocks on this list have the potential for significant returns in the coming years.

For example, when Netflix was recommended on December 17, 2004, a $1,000 investment would now be worth around $495,226!* Similarly, when Nvidia was included on April 15, 2005, a $1,000 investment would be around $679,900!*

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*Stock Advisor returns as of April 14, 2025

Howard Smith holds positions in Nvidia. The Motley Fool also has positions in and recommends Nvidia. The Motley Fool adheres to a strict disclosure policy.

The views and opinions expressed herein belong to the author and do not reflect those of Nasdaq, Inc.