NVIDIA's Stock Tumbles 14% in 2025–Can the Stock Rebound?

Recent market volatility has kept NVIDIA (NVDA, Financial) investors on edge, but the company has been at the forefront of the AI revolution. The stock has pulled back from a strong 2024 rally and had to fight cheap competition from Chinese rival DeepSeek and wider AI market uncertainty. Shares gained 1.6% Tuesday but are down 14% year to date.

Fortunately, despite short-term overhangs, NVIDIA remains the leader in the AI semiconductor space today. Recently, the company revealed its first-ever ‘Quantum Day’ at GTC 2025 to underline next-generation computing pushes it has been on. Meanwhile, the Trump administration’s positive anticipation of AI infrastructure investment added to the mood.

Performance has been absolutely staggering over NVIDIA’s decade. Its revenue has soared by over 553% since 2014 and more than 1,323% for net income. Using adjusted splits in the stock price, it has gone up 9,610% over the same period. The price was high until long-term upside potential was called out by analysts, citing the company’s leadership in AI chips and deep industry partnerships.

However, competition is intensifying. NVIDIA continues to dominate, but rivals are quickly spinning out their own AI chip designs as they push down on market share and margins. On the other hand, the artificial intelligence boom is still ongoing, and NVIDIA must continue to innovate in order to justify its premium valuation for as long as I am able to.

Note: This article contains my own opinion

This article first appeared on GuruFocus.