Nvidia Stock Is Tumbling Today. Is This a Chance to Buy?

Core Viewpoint - Nvidia's quarterly report exceeded expectations, showcasing strong data center revenue growth, but the stock experienced a decline despite positive performance [1][3]. Group 1: Financial Performance - Nvidia reported sales of $39.3 billion for the fourth quarter, surpassing the guided expectation of $37.5 billion, with full-year revenue more than doubling year over year [3]. - The company anticipates sales of approximately $43 billion in the current quarter, indicating a sequential growth rate of less than 10%, a slowdown compared to the mid-teens growth rate from the previous year [4]. Group 2: Market Concerns - CEO Jensen Huang highlighted that data center sales in China are significantly lower than pre-export control levels, and the competitive landscape in China remains challenging [5]. - There is a projected decline in profitability, with gross margins expected to be around 71% in the current fiscal first quarter, down from 75% in the previous fiscal year [5]. Group 3: Growth Potential - Despite current challenges, Nvidia continues to show impressive growth in its data center business, and its automotive and robotics segments are also beginning to gain traction, which could drive future growth [6]. - Investors are encouraged to maintain a long-term perspective, as the recent stock decline may present a buying opportunity [2].