NVIDIA: Is the Fall in Shares a Warning Sign or an Opportunity for Investors?

After a rapid rise, NVIDIA (NASDAQ: NVDA) shares fell by 22% and are now trading around $118.53. But experts believe that this is a temporary "lull". The company continues to dominate the AI infrastructure sector: revenue doubles year after year, and net margin exceeds 55%.

Despite the risks - US export restrictions, competition and possible regulation of AI - NVIDIA remains the leader. Its unique solutions, such as CUDA, Omniverse and AI Enterprise, create a closed ecosystem that is difficult to exit.

Monte Carlo simulation showed that the average predicted price in a year is $287.06. Even in the worst case, the fall does not exceed $100, and in the optimistic case - growth to $620. This indicates a high probability of growth at the current price.

Yes, there are risks: tightening control over AI, dependence on TSMC, increased competition (including from Google and Amazon). But even with these factors in mind, analysts are calling NVIDIA a “solid bet on the future of artificial intelligence.”

Bottom Line: Despite the temporary decline, NVIDIA stock is still considered a strong buy for those who believe in the advancement of AI.