Buy Nvidia Stock At The Dip

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Buy Nvidia Stock At The Dip

Should You Buy Nvidia (Nvda) Stock At The Dip?

The Nvidia stock is going through some tough times, but it is still a company with $5 trillion market cap. So, even if the stock price declines, it doesn't change the fact that Nvidia stock remains king of the US market.

Now that the Nvidia stock has moved lower from its ATH, many are wondering if it is worth buying the dip. To understand this, we must understand why the Nvidia stock is falling in the first place.

Nvidia'S P/E Ratio Is 53.55

One reason for the fall in the Nvidia stock price has to do with the broader market sell-off. Even the Nasdaq index is trending lower, which shows that the market was overvalued and is now in a correction phase.

Also, some are now worried that the AI companies like Nvidia are in a bubble, as they have risen so much in such a short time. So, any fears about AI also show up in Nvidia stock as it is spearheading the AI movement.

Another reason for the declining stock price of Nvidia is valuation fatigue. The P/E of Nvidia is 53.55, which is a lot higher than it would be to justify buying at all!

This also makes it tough to justify any more gains in the Nvidia stock. So, that's a solid reason why many investors are now selling the stock to book their profits.

But all of this doesn't change the fact that Nvidia is a very solid company at its core. So, if the Nvidia stock declines by 10% or even more, it can be a great opportunity to add some Nvidia stock.

However, the key here is to not go all in at the very first opportunity you get to buy the Nvidia stock. Instead, a better option is to space out the buying at different levels to get a good average price.

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