Is Nvidia Still Worth Investing in? The Stock Seems Flat Now

Nvidia (NVDA) was the darling of the stock market for much of 2024, with an early performance that beat even its stellar 2023 gains. However, the last quarter of 2024 has been tough on the stock.

Nvidia is struggling now.
Nvidia is in a slump right now.

Investors may want to rethink their Nvidia holdings after they take a look at its recent performance. The stock is up right now by just 0.46% for the day, ahead of the last day of trading for the stock market for this week. That does not paint a complete picture of how the stock is really performing, though.

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Take a look at its movement across the last 30 days, and you will see that the stock price has dropped from $142 to $138. It gets worse when you look at NVDA’s performance over the last three months. Instead of upward movement, the overall result has been a mostly flat price. On October 18th, Nvidia’s stock price was at $138- at the same price it is today. There has been a change from the beginning of that month, when the price was $124, but what we have seen for nearly the last three months is that Nvidia, despite its ups and downs, has not really gone anywhere.

What Is Going on With Nvidia?

Nvidia has been hit in recent weeks by an investigation carried out by the Chinese government’s State Administration for Market Regulation. The company is being investigated by them for antitrust activity, as well as by the US Department of Justice and the Federal Trade Commission.

The problem comes down to the fact that Nvidia owns a large part of the AI supply chain. They make processing chips that are essential for artificial intelligence computations, which require massive amounts of memory and processing power. Other companies make these chips as well, but Nvidia controls the lion’s share of the market.

Nvidia stock is also down because there are now more competitors for it to deal with. As the AI market expands, there is more room for other companies to step in and grab a portion of the consumer base.

The company is also struggling against a stock market downturn that occurred naturally as part of price correction. Because the stock market climbed so quickly after the US election results, many companies are suffering from price corrections in recent weeks as the market stabilizes.  

Is This Stock No Longer a Good Investment?

Nvidia is still controlling a large portion of the growing AI supply market. That position could be in jeopardy as investigations continue into its monopolistic behavior. However, the fact that new competitors are emerging will help Nvidia’s case. The longer the investigation drags on, the more likely Nvidia is to come out of them unscathed and unchanged.

What the new competition means, though, is that Nvidia might not be as profitable in the future as it has been through 2023 and 2024. The AI market is strong and should continue to expand for years to come, so Nvidia’s future looks secure. We simply do not expect it to be as wildly bullish now as it has been before.

 

 

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ABOUT THE AUTHOR See More
Timothy St. John
Timothy St. John
Financial Writer - European & US Desks
Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.
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