Is it time to buy Nvidia shares before new maximums of all time?

Nvidia (Nasdaq: NVDA shares) have taken a lot of peak. A 17% drop in a single day caught most of the headlines, but the action has decreased 22% at its lowest point, after starting 2025 in its historical maximum. The price of $ 116 was one that some parish bosses said we would never see again. Is it time to buy the sauce before the new maximums of all time? Or could this have more to block?

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To understand the attractiveness of Nvidia's actions, it is worth taking a time to evaluate how dependent are the large language models (LLM) in their chips.

When chatgpt was launched, Nvidia made the best GPU for it. It had an advantage. And that resulted in 90% or so from the chips used in Nvidia.

But Chatgpt debuted, if you can believe it, almost two and a half years ago. Tons of rivals LLMS have reached the market, such as Throw, Accumulateand Gemini. Surely Nvidia competitors have had the opportunity to catch up?

Well, not really. It is believed that the percentage of Nvidia chips remains about 85%. Nvidia is halfway, while its competitors have not even finished tie their laces.

It is the seemingly impregnable type of advantage that easily explains why Nvidia actions have multiplied 11 times in value since LLMS broke into the scene. AMD The actions have not even doubled. Intel Actions have dropped 38%. Crikey

Why did the stock fall?

So what is this fall about? A 22% drop is nothing to smell. Is it a sign that Nvidia's domain has an end in view?

Well, the basic story is that a Chinese startup called Depseek made a LLM for a fraction of the cost of all others. The relevant point of Nvidia is that it does not need so many chips, which could do a long -term dent in sales.

The counter -argument says that this has kicked the open door of the general adoption of the ai. We could see custom models that are run on the smartphones that we all have in our pocket.

If that is the case, then Nvidia could return to the top. After all, their chips are still the best in class. Hubbub around Depseek could end up increasing sales.

My opinion

Personally, I do not believe that the investment case has been harmed a lot in the last week. An inverter who lacks exposure to the benefits of ai may want to consider buying at the discount price.

What reports that my decision is the valuations, currently a price ratio of 48 with a direct P/E ratio of 30. They are not cheap, although they are not astronomical for a company with such good growth prospects.

The problem is that the profits have been high thanks to ai's gold fever. It is rumored that most sales come from four or five Megacap technology firms. Combined with my exhibition in other areas, that seems too risk.