Nvidia Is Sinking Today. Is It Time to Buy the Artificial Intelligence (AI) Stock?

Core Viewpoint - Nvidia's stock is experiencing significant sell-offs following a day of explosive gains, reflecting investor concerns over macroeconomic factors and trade tensions [1][3][4]. Market Reaction - Nvidia's share price dropped 7.5% during Thursday's session, contributing to a year-to-date decline of 21% and a 29% drop from its peak [1][3]. - The broader market also faced declines, with the S&P 500 down 4.5% and the Nasdaq Composite down 5.5% at the same time [1]. Trade Policy Impact - The stock market had previously surged due to President Trump's announcement of a 10% import tax on goods from all countries except China, while tariffs on Chinese products were raised from 104% to 125% [2]. - Investors initially focused on the suspension of reciprocal tariffs for other countries, but are now reacting to the implications of the escalating trade war with China [3]. Investment Strategy - Despite the volatility, Nvidia remains a leader in advanced GPUs and AI hardware, but the macroeconomic landscape warrants a cautious investment approach [4]. - For long-term investors, current prices may present a buying opportunity, suggesting a dollar-cost-averaging strategy rather than a lump-sum investment [5].