Nvidia (NVDA +2.59%) shares have been in a slump. The artificial intelligence (AI) leader had a strong fiscal 2026 second quarter, but the stock had already moved meaningfully higher in 2025. Additionally, investors are increasingly concerned that Nvidia's China business may be in trouble.
Management said it didn't sell any of Nvidia's China-specific H20 chips in Q2, and also didn't include any future sales in its third-quarter outlook. That spooked investors, and Nvidia shares have continued a monthlong slide after its quarterly report on Aug. 27.
Yet there is still a great reason to own Nvidia shares. And the more than 8% price decline over the last month gives investors a better opportunity to buy them now.
Image source: Getty Images.
Nvidia has a massive opportunity ahead -- even without China
Nvidia CEO Jensen Huang may be largely responsible for investor fears. In a May interview in which Huang discussed chip export restrictions, he said that being cut out of the $50 billion Chinese market over the next several years would be a "tremendous loss" for U.S. companies.
Nvidia's data center sales only grew 5% sequentially in the most recent quarter. That was largely due to the lack of China sales and was a big drop from the sequential quarterly sales increases it had been reporting in the last two years. But investors focusing on China are overlooking the bigger picture. The overall AI market is expected to continue to grow strongly for the remainder of this decade.
Image source: Statista.
The data in the chart represents a 16.5% compound annual growth rate over the next three years and about 15% through 2030. Nvidia will play a leading role in supplying those needs. Nvidia's business is broad enough for the company to still be expecting a 15.6% sequential overall revenue increase in Q3, even without any China sales.
NASDAQ: NVDA
Key Data Points
Demand remains strong, and that should continue for several years. The global picture should give investors confidence to buy the recent dip in Nvidia stock.
