<p>It's never fun to see your investments lose money. And when a stock's price falls more than 10% in a month, it's normal to wonder if you should sell to lock in your gains before it falls any further.</p>
<p>That's something investors in <strong>Nvidia </strong><span class="ticker-mention inline-flex items-center font-bold">(NVDA <span class="ml-1 text-red-900">1.39%</span>)</span> need to seriously think about. Shares of the world's leading chipmaker dropped 12.6% between June 2 and July 2, and they're down 17% from May's all-time high of $235.74/share.</p>
<p>But this latest drop might not be such a bad thing, actually. Here's why investors shouldn't panic and why Nvidia's pullback might actually be good news.</p>
<div><img alt="A black sign with Nvidia's logo outside Nvidia's headquarters." width="880" height="528" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84NzcxODQvbnZpZGlhLWhlYWRxdWFydGVycy1vdXRzaWRlLXdpdGgtYmxhY2stbnZpZGlhLXNpZ24td2l0aC1udmlkaWEtbG9nby5qcGcmdz0zODQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84NzcxODQvbnZpZGlhLWhlYWRxdWFydGVycy1vdXRzaWRlLXdpdGgtYmxhY2stbnZpZGlhLXNpZ24td2l0aC1udmlkaWEtbG9nby5qcGcmdz0zODQw"/>
<p>Image source: Nvidia.</p>
</div>
<h2>There have always been ebbs and flows with Nvidia stock</h2>
<p>Obviously, a pullback in a company's stock price offers new investors the opportunity to buy the dip. That's not the kind of &#34;good news&#34; I'm talking about here, although it's true that now might be a good moment to open a new position in the chipmaker if you don't already own shares.</p><div><div id="foolcom_sidebar_top_container"><div><div><div></div><div></div><div></div></div></div><div></div></div></div>
<p>Instead, I'm talking about the natural ebbs and flows of Nvidia's stock price. The company's road to being the largest company in the world with a $4.7 trillion market cap hasn't been a smooth one. In just the last five years, the stock has seen dizzying plunges multiple times.</p><div></div>
<section><div><div><div><small><div>Expand</div></small></div><div><img alt="Nvidia Stock Quote" width="64" height="64" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL05WREEucG5nJnc9MTI4?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL05WREEucG5nJnc9MTI4"/></div><div><h2>NASDAQ: NVDA</h2><div>Nvidia</div></div></div><div><div><div>Today's Change</div><div>(-1.39%) $-2.75</div><div>Current Price</div><div>$194.84</div></div><div></div></div></div><div><div></div><div><h3>Key Data Points</h3><div><div>Market Cap</div><div>$4.7T</div><div>Day's Range</div><div>$192.36 - $200.03</div><div>52wk Range</div><div>$157.34 - $236.54</div><div>Volume</div><div>5.6M</div><div>Avg Vol</div><div>159M</div><div>Gross Margin</div><div>74.15%</div><div>Dividend Yield</div><div>0.14%</div></div></div></div></section>
<p>Between November 2021 and October 2022, Nvidia's share price plunged 66%. It recovered a bit, only to drop by more than 20% again in December 2022. The company went on to experience nine drops of 15% or more between July 2023 and March 2026, about three per year.</p><div><div id="in_line_article_pitch_container"><div><div><div><div></div></div><div><div></div><div></div><div></div></div></div></div><div></div></div></div>
<p>But over the last five years, the stock has risen by more than 851%. And if you had sold during any one of those previous 15% dips, you would have missed out on lots of gains.</p>
<p>The biggest of those gains came suddenly and after a prolonged downturn. For example, between October 2025 and March 2026, Nvidia's stock lost 20% of its value over five months. Then, without warning, shares surged 42.7% between March 30 and May 14, hitting all-time highs.</p>
<div><img alt="A steel roller coaster goes over a large drop on a red track and blue supports." width="880" height="608" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84NzcxODQvZ2V0dHlpbWFnZXMtMTU0OTMyODM4LTEyMDB4ODI5LTRiY2RhYzkuanBnJnc9Mzg0MA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84NzcxODQvZ2V0dHlpbWFnZXMtMTU0OTMyODM4LTEyMDB4ODI5LTRiY2RhYzkuanBnJnc9Mzg0MA"/>
<p>Image source: Getty Images.</p>
</div>
<h2>A roller-coaster ride</h2>
<p>When a stock rockets upward and never experiences temporary pullbacks like Nvidia's has over the last five years, it can make new investors reluctant to buy shares out of concern that the stock is too expensive. And as the world's largest company by market cap, Nvidia already faces skepticism about its valuation.</p>
<p>It can also set the company up to experience a major share price drop if it reports anything less than stellar earnings. Nvidia doesn't seem to have that problem. In fact, it almost faces the opposite issue: Over the past two years, Nvidia's earnings reports have been stellar, with massive growth in revenue and net income. Yet after five of its last eight earnings reports, the stock has seen an immediate and significant share price decline.</p>
<p>If recent history is any guide, Nvidia's recent share price drop is likely to reverse itself unexpectedly, and the stock should soar to new heights. Smart investors know better than to panic sell this longtime winner that's still at the top of its game.</p><div id="article_pitch_container"><div><div><div></div><div></div><div></div><div></div><div></div><div></div><div></div></div></div><div></div></div><div id="promobox_container"><div><div><div></div><div></div><div></div><div></div></div></div><div></div></div>

NVDA

NVDX

NVDU

<p>Nvidia stock dropped 13% over the last month, raising investor concerns. However, historical data shows such pullbacks are common and often precede significant gains. Despite recent volatility, Nvidia's strong earnings growth and market leadership suggest this dip may present a buying opportunity rather than a signal to sell.</p>

- Nvidia's shares dropped 12.6% between June 2 and July 2, and 17% since May's peak.  
- Despite this decline, the company's stock has historically rebounded after similar pullbacks, showing a 851% increase over the last five years.  
- Investors are advised to remain calm, as the stock is expected to recover based on Nvidia's strong earnings growth and the past trends in its price fluctuations.

Motley Fool

NVIDIA

T-Rex 2X Long NVIDIA Daily Target ETF

Direxion Daily NVDA Bull 2X Shares

Direxion Daily NVDA Bear 1X ETF

AXS 1.5X NVDA Bear Daily ETF

GraniteShares 2x Long NVDA Daily ETF

T-Rex 2X Inverse NVIDIA Daily Target ETF

XL2CSOPNVDA

YieldMax NVDA Option Income Strategy ETF

XI2CSOPNVDA

GraniteShares 2x Short NVDA Daily ETF

ProShares Ultra NVDA

Leverage Shares 2X Long NVDA Daily ETF

Leverage Shares 2x Cpd Acclrtd NVDAMnETF

NVDA WeeklyPay ETF - Roundhill

GraniteShares YieldBOOST NVDA ETF

xETFs NVDA Daily Income ETF

YieldMax Short NVDA Option Inc Strgy ETF

XI2CSOPNVDA-U

Roundhill Daily 2X Lon Mag Sev ETF

VanEck Semiconductor ETF

iShares Semiconductor ETF

Direxion Semicon Bull 3X

Invesco PHLX Semiconductor ETF

SPDR S&P Semicon

Invesco Semiconductors ETF

First Trust Nasdaq Food & Semicon

NVIDIA Corporation

Nvidia Stock Is Down 13% Over the Last Month. Here's Why That Could Be Good News.