Nvidia (NVDA 3.01%) stock is falling fast amid multiple bearish catalysts in Wednesday's trading. The company's share price was down 9.7% as of 3:15 p.m. ET amid a 3% pullback for the S&P 500 and a 4% decline for the Nasdaq Composite.
NASDAQ: NVDA
Key Data Points
Nvidia's valuation is heading lower today amid multiple bearish catalysts. Yesterday, the company submitted a filing to the Securities and Exchange Commission stating that it would be taking a $5.5 billion write-down following news from the U.S. government that it would now require an export license to sell its H20 processors to China. It's unlikely that the license will be granted in the near term and likely signals a significant loss of future sales for the artificial intelligence (AI) hardware leader.
Nvidia is also moving lower in response to macroeconomic news. In addition to the Trump administration's announcement that tariffs on China would be raised to 245%, Federal Reserve Chairman Jerome Powell said that the central banking authority would continue to take a cautious approach to lowering interest rates. Nvidia stock is now down roughly 26% across 2025's trading.
Is Nvidia a buy after its latest pullback?
Nvidia's advanced processors are at the heart of the AI revolution. As a result, they're also playing a significant role in the escalating competition between the U.S. and China. In addition to the potential for the trade war to continue causing volatility for the broader market, there's a risk that Nvidia will face significant business-specific challenges if relations between the countries continue to deteriorate.
Despite the recent sell-offs, investors without an above-average tolerance for risk and volatility may want to avoid betting big on Nvidia stock right now. On the other hand, I think that long-term investors seeking growth plays in the AI space will be able to score strong returns by buying the tech leader's shares on pullbacks and holding even if more volatility is in the cards.
