Nvidia’s actions were hardly affected during the current sale.
January 6, actions of semiconductor powerhouse Nvidia (NVDA -3.54%)) Closed at a summit of $ 149.43. At the time, the company’s market capitalization oscillated approximately 3.7 billions of dollars.
But these tops were ephemeral. Throughout 2025, a villain of new pricing policies, mixed economic data, unknowns on the current policies of the federal reserve and even an emerging start-up of artificial intelligence (IA) of China called Deepseek contributed to an epic sale in the Nvidia stock.
When writing these lines, its market capitalization is 2.9 dollars of $ 800 billion dollars in heights seen just a few months ago. With investors who run on Nvidia, is the stock still a purchase? Let us discuss and discover.
Nvidia’s activities actually seem solid
About a month ago, NVIDIA said profits for its 2025 financial year (completed on January 26). Again, the company’s IT and networking segments were the brilliant stars. These two segments constitute most Nvidia’s activities, capturing the company’s graphic processing units (GPU), which are an increasingly important component for AI data centers.
The entire data center has generated $ 115 billion in revenues, up 142% from one year to the next. In this category, IT sales climbed 162% while the company’s networking activity increased by 51% from one year to the next.
During the fourth quarter, the income from the data center reached its highest level of the year at $ 35.6 billion, almost double the fourth quarter of the previous year. One of the main contributors at the end of the year was the very successful launch of its new generation GPU architecture called Blackwell.
Image source: NVIDIA.
Macro-tendencies should be a bell tower for Nvidia
A number of influential AI players have recently started to share their spending plans, which could help to clarify Nvidia’s prospects.
For example, Apple announced that it will invest $ 500 billion over the next four years in areas such as engineering and silicon manufacturing. And Manufacture of Taiwan semiconductors – which makes NVIDIA chips – expands its footprint in the United States with its own infrastructure investment of $ 100 billion.
Finally, cloud computing hyperscalers Amazon,, MicrosoftAnd Alphabet Capital spending is all committed to increasing, providing for more than $ 250 billion in IA infrastructure expenditure in only 2025.
Although each of these companies has its own priorities, all work closely with Nvidia in a form or a way – from manufacturing to the equipment of their data centers with fleas. Given the nearly $ 1 billion of infrastructure expenditure planned for the coming years, I consider its growth prospects as very convincing.
Are NVIDIA shares still a purchase?
As I wrote before, I use on November 30, 2022, as my start date for the AI revolution. It is the day OPENAI published Le Chatppt commercially. Since that date, the NVIDIA action has increased by 615%. Given the gains of this magnitude, you might be inclined to think that his best days are behind.
NVDA market capitalization data by Ycharts.
However, the above graph shows an interesting trend. Although the stock has increased considerably in recent years, there have been notable reductions. And yet, as the graph clearly does, sales in the stock are generally brief, and it historically bounces to new heights.
I think even with its parabolic gains, the stock is ready to bounce. What is even better is that the actions are negotiated for a historical discount at the moment. The compensation price in the future of the company (P / E) of 26.7 is much lower than its average over three years and 47% reduction over its period during this period.
NVDA PE Ratio (Forward) Data by Ycharts.
Given that the company operates at record levels, the secular winds suggest that the company remains positioned to capture increasing IA infrastructure expenses and the historical resilience of the action, I think it is now an excellent opportunity to take advantage of the sale and buy Nvidia shares during their sale.
Suzanne Frey, director of Alphabet, is a member of the board of directors of Motley Fool’s. John Mackey, former CEO of Whole Foods Market, a subsidiary of Amazon, is a member of the board of directors of Motley Fool’s. Adam Spatacco has positions in Alphabet, Amazon, Apple, Microsoft and Nvidia. The Motley Fool has positions and recommends Alphabet, Amazon, Apple, Microsoft, Nvidia and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: Long January 2026 Calls $ 395 on Microsoft and Court January 2026 405 $ calls Microsoft. The Motley Fool has a policy of disclosure.
