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

After explosive gains in yesterday's session, Nvidia (NASDAQ: NVDA) stock is seeing big sell-offs in Thursday's session. The artificial intelligence (AI) hardware leader's share price was down 7.5% as of 1 p.m. ET. At the same point in today's trading, the S&P 500 was down 4.5%, and the Nasdaq Composite was down 5.5%.

The stock market saw nearly unprecedented single-day gains yesterday after President Donald Trump announced that goods from all countries except for China would have an import tax rate of 10% and that his administration's higher reciprocal tariffs would be suspended for 90 days. But Trump also announced that tariffs on Chinese products would be increased from 104% to 125%.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Investors concentrated on reciprocal tariffs being paused for all other countries yesterday, but today the market is reacting to the potential impacts of the escalating trade war between China and the U.S. With Thursday's sell-off, Nvidia stock is now down 21% year to date and 29% from its high.

Is Nvidia stock a buy right now?

Nvidia's share price will continue to see big swings amid the rapidly shifting macroeconomic backdrop. Even though the company retains clear leadership in advanced graphics processing units (GPUs) and other AI hardware, investors' focus has understandably shifted to the macro picture. And it makes sense to take a somewhat cautious approach when there's still so much uncertainty on the horizon.

For long-term investors, I think that buying Nvidia stock at today's prices can still lead to impressive returns. But rather than buying into the stock all at once, I would recommend treating pullbacks as investment opportunities as part of a dollar-cost-averaging strategy. The share price has been pushed to a level that looks cheap by conventional metrics, but macroeconomic and geopolitical risk factors open the door for continued sell-offs.

Should you invest $1,000 in Nvidia right now?

Before you buy stock in Nvidia, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $509,884!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $700,739!*

Now, it’s worth noting Stock Advisor’s total average return is 820% — a market-crushing outperformance compared to 158% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 10, 2025

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.