<div id="readability-page-1">It's been a rough start to the year for Nvidia (NVDA 5.27%) shareholders. As of this writing, shares are down about 12% year to date and 20% below its January highs. The news from the company must be bad, right? Well, not exactly. Late last month, Nvidia reported fourth-quarter and full-year earnings for its fiscal 2025 period, which ended Jan. 26. The news was good, not bad. Nvidia impressed analysts and investors once again by exceeding both top- and bottom-line estimates. Guidance called for another jump in revenue in the current quarter to a record $43 billion. So, let's look at what has the stock plunging in 2025. <h2>Market correction = opportunity</h2> Some of the same things that have driven the Nasdaq Composite into correction territory have caused fear and uncertainty around Nvidia stock. The Trump administration has announced -- and changed -- several applications of import tariffs that could affect Nvidia's business. On top of that, national security concerns have raised the prospects for more export restrictions on Nvidia's powerful artificial intelligence (AI) chips. The tariffs themselves could have both direct and indirect implications for Nvidia. There are concerns that tariffs could hinder economic growth and create an inflationary environment. Either of those situations could negatively impact semiconductor chip sales. After all, if a company building out data center capacity believes returns on investments will be impacted, it may very well reduce or delay those investments. Nvidia's share price skyrocketed over the last 18 months as investors forecast impressive revenue growth to continue. It's been nothing short of amazing. Sales began to soar in 2023. Revenue jumped 126% in fiscal 2024, ending Jan. 28, 2024. It didn't slow down in fiscal 2025, either. Growth of another 114% for that period ended this January, and the stock continued to run higher. That is, until recently. <h2>Nvidia investors shouldn't worry</h2> The 22% drop from its January high mark might just be a great opportunity for those who feared they missed out on owning Nvidia stock. As of this writing, it was trading at a price-to-earnings (P/E) ratio of just about 25 based on calendar year 2025 earnings. That's pretty attractive compared to the 10-year average P/E of 32 for the Nasdaq-100 index. That's its lowest level since earnings estimates skyrocketed early last year. The stock itself has more than doubled since the start of 2024. <img src="https://imageproxy.pbkrs.com/https://media.ycharts.com/charts/e1d1341c384441c444666a90520cbbc8.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="720" height="441" original-src="https://imageproxy.pbkrs.com/https://media.ycharts.com/charts/e1d1341c384441c444666a90520cbbc8.png"/> NVDA PE Ratio (Forward) data by YCharts Nvidia still has plenty of opportunities for growth. Barring any major development of a trade war or recession, revenue should increase about 50% this year. That's mostly driven by the Blackwell AI architecture, which is now in full production. There are many business development possibilities beyond that. <h2>Nvidia touches most everything</h2> The Rubin platform will succeed Blackwell with an even more powerful AI suite of offerings. But AI is more than just data center computing power, too. Companies developing autonomous vehicle (AV) technology are also loading up on Nvidia's products for training purposes. The company says all 30 of the existing top AV data centers are powered by it. Revenue in its gaming segment grew to over $11 billion last year. More than 200 million gamers and creators use Nvidia GeForce GPUs (graphics processing units). Millions of developers have downloaded its Monai open-source framework for healthcare imaging AI. Perhaps most potential will come from robotics as businesses utilize that evolving technology to improve efficiency. Nvidia says over 1.3 million developers already use the Nvidia Jetson high-performance computer platform for tasks including robotics, computer vision, and generative AI. Nvidia has many irons in the fire. While revenue growth will slow to about 50% this year, its lineup of AI chips and software stacks is unmatched and constantly improving. Add in the possible catalysts from other segments, and its very reasonable recent valuation, and it looks like a compelling time to buy the dip in Nvidia stock. </div>

Nvidia will release its first quarter report for fiscal year 2026 ending April 27, 2025. 

According to analysts surveyed by FactSet, Nvidia's first-quarter revenue is expected to increase 66% year-on-year to $43.3 billion; adjusted earnings per share will increase 44% year-on-year to $0.88. The growth rate of revenue and profits has slowed significantly compared with the same period last year. In the same period last year, Nvidia's revenue increased by 262% year-on-year, and its adjusted earnings per share increased by 461% year-on-year.

Nvidia will release its first quarter report for fiscal year 2026 ending April 27, 2025. According to analysts surveyed by FactSet, Nvidia's first-quarter revenue is expected to increase 66% year-on-year to $43.3 billion; adjusted earnings per share will increase 44% year-on-year to $0.88. The growth rate of revenue and profits has slowed significantly compared with the same period last year. In the same period last year, Nvidia's revenue increased by 262% year-on-year, and its adjusted earnings per share increased by 461% year-on-year.

NVIDIA Financial Results for Q4 Fiscal 2025

NVDA

Nvidia's stock has dropped 20% from its January highs, despite strong earnings reports and positive revenue guidance. The decline is attributed to market corrections and concerns over tariffs and export restrictions affecting its AI chip business. However, analysts suggest this dip presents a buying opportunity, as Nvidia's P/E ratio is attractive compared to historical averages. With expected revenue growth of 50% this year driven by its AI architecture and diverse applications in gaming, autonomous vehicles, and robotics, Nvidia remains a strong investment option.

- Nvidia's shares have dropped 12% year to date, despite reporting strong earnings that exceeded estimates and projecting record revenue of $43 billion for the current quarter.  
- The decline is attributed to market corrections, import tariffs, and national security concerns affecting the semiconductor industry, which could hinder economic growth and chip sales.  
- Despite the recent drop, Nvidia's growth potential remains strong, with expected revenue increases driven by its AI architecture and various business opportunities, making it an attractive investment option.

Nvidia Stock Is Down 20%. Is It Time to Buy the Dip on the AI Leader?