Nasdaq Correction: 5 Reasons Nvidia Stock Is Still a Top Artificial Intelligence (AI) Stock to Buy Right Now

Artificial intelligence (AI) stocks have sold off heavily over the past few weeks, with Nvidia (NASDAQ: NVDA) being one of the hardest-hit stocks, down around 30% from its all-time high. However, I don't think this sell-off is a sign of things to come; instead, it's a buying opportunity for investors with a long-term view.

I've come up with five reasons why Nvidia will be all right, although there are likely more because this giant is at the center of everything AI.

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1. We're still in the early innings of AI adoption

Nvidia makes graphics processing units (GPUs) that power AI training and inference. Because GPUs can compute in parallel, they dramatically increase the number of tasks they can do simultaneously, which is incredibly useful for arduous tasks like AI. GPUs can be connected in clusters to amplify this effect, which is why they have become the tool of choice for anyone working in the AI field.

Although a massive amount has been spent on AI computing hardware, we're still in the early stages of AI adoption. The AI hyperscalers (those spending the most money to build AI infrastructure) have all indicated that 2025 will be a year of record spending on AI-related hardware. This clearly points to the fact that we're far from done building the infrastructure needed to power society and business with AI. As a result, investors need to understand that AI isn't a short-term trend; it's a long-term mindset shift as to how businesses run and operate.

2. Blackwell adoption will be a big part of Nvidia's 2025 growth

Nvidia is also making huge advances in chip technology, as evidenced by its latest Blackwell architecture. Blackwell is the successor to the incredibly popular Hopper architecture, and the gains Blackwell makes over its predecessor are quite impressive. Blackwell can train AI models four times faster than Hopper and has 30 times greater inference speeds. The inference gains are noteworthy, as inference is becoming more important as the need shifts from training these AI models to actually using them.

Blackwell GPUs will become the new industry standard in AI training, and as Nvidia continues to ramp up production to meet demand, we'll see huge growth.

3. Nvidia is still going to see strong revenue growth

Nvidia has put up impressive revenue growth figures over the past two years, growing revenue 265% year over year in fiscal year 2024 and 114% in fiscal year 2025. In fiscal year 2026, Wall Street analysts expect 56% growth. While that indicates slowing revenue growth in general, you'd be mistaken if you think this represents a slowdown.

The law of large numbers is working against Nvidia because its growth seems to be slowing. In fiscal year 2024, Nvidia's total revenue increased by $34 billion, and in fiscal year 2025, it increased by $70 billion. If Wall Street analysts' projections come true, Nvidia's fiscal year 2026 revenue will increase by $74 billion.

While the percentage gains are decreasing, the raw amount of revenue that Nvidia is adding to its total is accelerating, which shows that AI demand is still quite strong and growing.

4. Nvidia's margins will increase throughout the year

One of the concerns with Nvidia was management's projection that gross margin would take a dip at the start of the year. The biggest fear here was that Nvidia was losing its pricing power, and other alternatives were becoming more attractive, forcing it to cut its prices.

However, this is a false assumption, as Nvidia's management stated that this initial dip in gross margin is due to Nvidia ramping up Blackwell production as fast as possible to start off. This will inherently cause more issues and scrap, but Nvidia stated that it will become more efficient at producing these chips throughout the year, which is when its gross margins should recover to the mid-70% range.

NVDA Gross Profit Margin (Quarterly) data by YCharts

While this is something to keep an eye on, I don't think investors should get too worked up over this decline right now.

5. Nvidia's stock hasn't been this cheap in a long time

After the sell-off, Nvidia's stock is reasonably priced.

NVDA PE Ratio data by YCharts

You'd have to go back to 2019 to find the last time Nvidia's trailing price-to-earnings (P/E) ratio was this cheap. But that's a poor metric to focus on considering the strong growth Nvidia expects in FY 2026. With Nvidia's forward P/E sitting at 25, it looks like a very attractive stock, and I think it's a perfect stock to buy during this sell-off, as multiple long-term trends will push the stock higher for years to come.

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Keithen Drury has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.