There was a long period a while back when all Nvidia (NASDAQ:NVDA) stock did was go up. Between September 2022 when ChatGPT was released and late 2025, shares of the AI giant skyrocketed 1,300%.
Today though, Nvidia stock’s lower than back in July 2025. And it’s taken a particular pounding recently, slumping 18% in the past week (and 25% in a month).
This means someone who invested £5,000 seven days ago would now have just £4,100. Not exactly a great start.
I’ve held Nvidia shares on and off (mainly on) for years. But the past 18 months have been disappointing and I’m finding the constant volatility tiresome. Is it time I threw in the towel?
AI and the affair
There are two main concerns I currently have as a shareholder. The first is some of the investments Nvidia has been making. Flush with cash from the AI boom, it’s taken stakes in start-ups across the AI and robotics sectors.
Now there’s a chance some of these acorns become oaks, producing a nice windfall for Nvidia shareholders down the line. So I don’t mind most of this.
However, I don’t like the funding of neoclouds (specialised AI compute providers). I fear these loss-making firms don’t have sustainable business models. And they also buy Nvidia’s GPUs, introducing an element of circularity to the financing.
Nvidia has also invested heavily in OpenAI ($30bn) and Anthropic ($10bn). So not only is it vulnerable to a sudden slowdown in AI infrastructure spending, but the value of its investments could tank too.
Second, founder-CEO Jensen Huang has obviously been all over the news this week after having an affair with a woman who’s reportedly a Chinese spy (Beijing denies this). That headline definitely wasn’t on my bingo card!
Nvidia’s board’s investigating the matter and we don’t know what else will emerge, if anything. At worst though, it could lead to Huang’s departure as CEO. For me, this is a major risk because I think his visionary leadership’s irreplicable.
Fun fact: Nvidia generates an average of $7.2m in trailing-12-month revenue per employee. That’s an extraordinary level of productivity and more than any other Big Tech firm.
Nvidia is not an ordinary company and Jensen is not an ordinary CEO: he IS Nvidia.
Bernstein
Time to move on?
Zooming in on the actual business, things are booming. In the recent second quarter, revenue soared 106% year on year to $96.2bn, including 117% growth in data centre revenue.
I don’t expect this level of growth to continue forever, of course. That’s impossible due to the law of large numbers. However, Wall Street still sees revenue hitting $904bn in FY29 (which ends in January 2029, just over two years away). That would be up from $216bn in FY26.
To put that into perspective, $900bn would be more than the current combined annual revenue of Microsoft, Meta, Tesla, SpaceX, Netflix and Rolls-Royce!
After the crash, we’re looking at a forward P/E ratio of about 10.5. This ultra-low valuation suggests the stock’s currently a steal and therefore not worth selling.
Remember, AI agents, humanoid robots and self-driving vehicles are expected to proliferate. Nvidia’s technology is at the centre of all these trends.
My verdict? I think the stock’s worth considering buying anywhere around $170.
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Ben McPoland owns shares in Nvidia, Rolls-Royce and SpaceX.
This story originally appeared on Motley Fool
