One of the most highly anticipated quarterly reports on Wall Street was provided by Nvidia (NASDAQ: NVDA) on Wednesday evening. And the artificial intelligence (AI) darling didn’t disappoint.

Data center revenue continued to surge higher, and CEO Jensen Huang sounded as optimistic as ever. Yet the stock has fallen more than 13% in the past five days alone. 

That extended its losses in 2025 after an amazing 171% return in 2024. Based on the state of the business, though, the recent decline in the stock might just be a gift for long-term investors.

No time to get discouraged

Management previously guided investors to expect revenue of about US$37.5 billion in the fourth quarter. As has been the case all last year, the company exceeded that mark with sales of US$39.3 billion. Full-year revenue more than doubled year over year.

But investors are looking ahead to figure out when that revenue growth might slow. Nvidia sees sales of about US$43 billion in its current quarter. That would represent sequential growth of less than 10% compared to the mid-teens growth rate it had been reporting most of last year.

Investors also noticed something Huang said in the conference call for investors. “Data center sales in China remained well below levels seen on the onset of export controls. [And] the market in China for data center solutions remains very competitive,” he said.

Another concern is a decline in profitability. Gross margins in the current fiscal first quarter are expected to be about 71%. That compares to 75% in the fiscal year ended Jan. 26.

But Nvidia is still showing impressive growth and profits in the data center business. At the same time, its automotive and robotics segment is also beginning to take off. Quarterly growth there has been impressive.

Data source: Nvidia. Chart by author.

While it still pales in comparison to data center AI sales, this could be the catalyst for Nvidia’s next phase of growth. Investors would be wise not to bet against Nvidia.

The post Nvidia Stock Is Tumbling This Week. Is This a Chance to Buy? appeared first on The Motley Fool Canada.

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Fool contributor Howard Smith has positions in Nvidia. The Motley Fool recommends Nvidia. The Motley Fool has a disclosure policy.

Yesterday, the U.S. Federal Reserve delivered on the start of what looks likely to become a long-awaited interest rate cutting cycle. Stocks are generally rising in the aftermath as less expensive capital can help drive business growth.

One of those stocks gaining ground Thursday morning was artificial intelligence (AI) chip leader Nvidia (NASDAQ: NVDA). As of 11:40 a.m. ET, Nvidia shares were up by 5.3%. But it wasn’t just the Fed rate cut that had investors pouring into Nvidia stock today.

New industrial revolution

CEO Jensen Huang also just spoke on stage with Salesforce CEO Marc Benioff at the Dreamforce annual technology gathering in San Francisco hosted by Salesforce. He noted that the AI movement is transitioning from an industry of tools to an industry of skills. Huang called the opportunity from here “gigantic.” His comments gave investors reason to believe that the huge run in Nvidia shares isn’t over. Even with it well off its record level, Nvidia stock is still higher by over 140% year to date.

Last week, after a meeting at the White House between top tech leaders and the Biden administration, Huang told reporters that a new industrial revolution is beginning. His excitement for what’s to come showed at Dreamforce. He told Benioff he was there, “Helping to celebrate the beginning of the enterprise AI era.” “This is how industries are built,” he continued. “We’re going to bring a level of automation capability that the world’s never seen.”

Huang called it an extraordinary time in AI development with the scale from here being “exponential.” He’s already proven that Nvidia is the leader in providing the tools needed for AI growth. Now investors are starting to believe that another round of growth will come from Huang’s vision for Nvidia to provide the autonomous AI-powered agents that power the needed skills.

The post Why Nvidia Stock Jumped After the Big Fed Rate Cut appeared first on The Motley Fool Canada.

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Fool contributor Howard Smith has positions in Nvidia and Salesforce. The Motley Fool recommends Nvidia and Salesforce. The Motley Fool has a disclosure policy.

Nvidia (NASDAQ: NVDA) shares plunged more than 6% yesterday as global markets dropped from several negative catalysts. The selling started in Japan after the Bank of Japan raised interest rates, helping to trigger the unwinding of “carry trades” made by investors taking advantage of that country’s lower rates. Nvidia also had some company-specific news over the weekend (see below).

But some investors are looking at Nvidia’s drop as a buying opportunity. That’s led to a rebound of as much as about 6% in the stock today. Still, the advanced semiconductor maker’s stock has dropped by more than 15% over the last month. It remains a buying opportunity, even with today’s bounce.

Nvidia doesn’t have a supply or demand issue

Reports over the weekend about a newly discovered design flaw in Nvidia’s next-generation Blackwell artificial intelligence (AI) platform helped fuel yesterday’s sell-off. While the company didn’t acknowledge a problem, it would mean only a few months’ delay in the start of Blackwell sales, even if the reports are true.

As Oppenheimer analyst Rick Schafer noted in a new research note, there’s still plenty of demand for Nvidia’s existing Hopper series H100 chips to fill any delay in Blackwell sales. Schafer may have eased some investor concerns, writing, “Nvidia’s competitive position remains sound, and we don’t expect any share loss from a minor delay.”

Just how robust the demand for H100 chips remains will be a focus for investors when Nvidia releases its next quarterly report on Aug. 28. Any positive comments could help the stock regain what it has given up since its record peak in mid-June. Once sales of Blackwell start being reported, there could be even more fuel to drive shares higher.

That is what investors are considering as they add Nvidia shares on the recent drop. While it will likely remain volatile, the stock should be in consideration for a place in any long-term investor’s portfolio.

The post Nvidia Stock Bounced Back Today. What Investors Need to Know. appeared first on The Motley Fool Canada.

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• Got $5,000? 5 Tech Stocks to Buy and Hold for the Long Term

Fool contributor Howard Smith has positions in Nvidia. The Motley Fool recommends Nvidia. The Motley Fool has a disclosure policy.