The AI Trade Just Cracked. Here’s the Price at Which I’d Start Buying Nvidia.

Key Points:

• Nvidia's stock surged roughly tenfold between late 2022 and 2025 due to high demand for its GPUs, which are essential for training and deploying generative AI models, making it one of the world's most valuable companies.
• In 2026, Nvidia faced a sharp sell-off after reaching a record high of about $243 per share in October, with shares dropping below $150 following CEO Jensen Huang's resignation amid scandals.
• Nvidia's leadership in AI infrastructure, driven by its innovative GPU architectures and software ecosystem, sparked a broad investment theme impacting various industries including semiconductors, cloud computing, and energy sectors.
• The CEO resignation and ongoing uncertainties about AI infrastructure returns and regulatory risks have raised concerns about potential wider declines in AI-related stocks, which could affect major market indexes given the prominence of big tech companies.
• Despite current challenges, Nvidia's valuation has become attractive with a forward P/E ratio near 11, and investors might find buying opportunities around $155 to $160 per share, reflecting a discount relative to its historical valuation and future earnings potential.