Nvidia's Market Cap Just Fell Below $5 Trillion. Here's Why It's a Buying Opportunity
It's still not too late to get in on this market beater.
Overview
Is Nvidia's (NASDAQ: NVDA) incredible run finally over? Since the company released its latest earnings report -- for the first quarter of its fiscal year 2027, ending April 26 -- on May 20, the stock has been trending south. Nvidia's market cap recently dipped below $5 trillion, after peaking at above $5.5 trillion earlier this year. However, despite the market's skepticism, there remain excellent reasons to invest in Nvidia, especially at current levels. Here's why the stock is a no-brainer buy on the dip.
Image source: The Motley Fool.
Nvidia's bears will point to increased competition in the GPU (Graphics Processing Unit) market, including from companies such as Cerebras Systems (NASDAQ: CBRS), which recently went public. Others will highlight that the hyperscalers -- Nvidia's biggest customers -- are increasingly relying on internally developed custom artificial intelligence (AI) chips, which could decrease their exposure to Nvidia's hardware. Some of them are even exploring selling their AI chips to other data centers, a move that will pit them directly against Nvidia.
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Originally published at www.fool.com.