Nvidia’s stock value has plummeted by 60% or more in the past. This decline is due to various factors, including a slowdown in AI demand and increased competition from more resource-efficient models like China’s DeepSeek. The US government has also imposed export control restrictions on Nvidia’s AI chipset products destined for China, which could impact revenue.
Historically, Nvidia’s stock has declined significantly during economic downturns, but it has also fully recovered. In 2022, the stock fell by 62.7% before rebounding to its pre-crisis peak in 2023. However, this time around, the decline is more severe and may be driven by a broader economic slowdown.
Nvidia’s valuation remains attractive, with the stock trading at approximately 26x consensus FY’26 earnings. Nevertheless, there are risks associated with the company’s strong growth, including reduced pricing power and competition from new entrants. Maintaining a position in a declining stock is challenging, but a well-diversified portfolio can help mitigate risk.
Consider holding onto Nvidia stock if you have a long-term perspective, as it has historically recovered from significant declines. However, if the decline continues or worsens, it may be time to reassess your investment strategy and consider alternative options.
Source: https://www.forbes.com/sites/greatspeculations/2025/03/14/nvidia-stock-to-60