Is Nvidia stock overvalued and heading for a crash in 2025? Here's what history says

Nvidia has been majorly bolstered by the massive bull run at the US stock market through 2023 and 2024, but as the new year arrived, Wall Street’s growth pace slowed down significantly and so did Nvidia’s stock price rise. Ever since Nvidia announced that it is working on its state-of-the-art AI-enabled GPUs, the demand for the company’s stock kept rising, and once these chips began being rolled into the markets, things saw a massive upsurge.

Nvidia stock prices to crash in 2025?

However, US stock market history or Nvidia has been a rather tricky one, and with a possible market pullback on the cards based on the overheatedness of Wall Street, the chipmaking giants could be facing some major issues by the end of 2025.
It must also be remembered that Nvidia has previously faced four stock crashes since going public in the years 2001, 2008, 2018, and most recently in 2022, which is why US investors are now more afraid.

AI overhype to die down soon?

Bears at the US stock market are now claiming that Nvidia is currently overvalued, and things are looking poised for an epic crash. This is something that could affect a lot many more stocks than just Nvidia.

This is because, the fall of Nvidia would typically mean that the AI overhype would be coming to a halt, and its effect could reflect on stocks like Broadcom, Apple, Palantir Technologies, and others. Meta and Google could also face this wrath, even though they have other vertical operations within their companies other than their AI research.

FAQs:

Is Nvidia’s stock going to grow further?
Yes, after Nvidia’s decision to introduce AI-reliant GPUs, its stock shot through the roof, and is now growing at a phenomenal pace. But, that may soon come to a standstill, suggest reports. Has the Nvidia stock crashed in the past few days?
No, the Nvidia stock has not crashed in the last few days, but its growth pace has slowed down significantly.