Will You Be Comfortable Buying NVIDIA Stock?

Already own the stock? You might want to consider holding it. Planning to buy? This might be your opportunity. Consider the following data:

• Size: NVIDIA is a $4.4 Tril company with $165 Bil in revenue currently trading at $180.03.
• Fundamentals: Last 12 month revenue growth of 71.6% and operating margin of 58.1%.
• Liquidity: Has Debt to Equity ratio of 0.0 and Cash to Assets ratio of 0.38
• Valuation: NVIDIA stock is currently trading at P/E multiple of 50.7 and P/EBIT multiple of 43.5
• Has returned (median) 53.1% within a year following sharp dips since 2010. See NVDA Dip Buy Analysis.

While we like to buy dips if the fundamentals check out – for NVDA, see Buy or Sell NVDA Stock – we are wary of falling knives. Specifically, it is worth trying to answer if things get really bad, and NVDA drops another 20-30% to $126 levels, will we be able to hold on to the stock? What is the worst case scenario? We call it downturn resilience. Turns out, the stock has fared worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

Single stock can be risky, but there is a huge value to a broader diversified approach we take with Trefis High Quality Portfolio. Let us ask you this: Over the last 5 years, which index do you think the Trefis High Quality Portfolio outperformed – the S&P 500, S&P 1500 Equal Weighted, or both? The answer might surprise you. See how our advisory framework helps stack the odds in your favor.

Below are the details, but before that, as a quick background: NVDA provides graphics, compute, and networking solutions for gaming, professional visualization, datacenter, and automotive markets globally, with a strategic collaboration with Kroger Co.

2022 Inflation Shock

• NVDA stock fell 66.4% from a high of $33.38 on 29 November 2021 to $11.23 on 14 October 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 25 May 2023
• Since then, the stock increased to a high of $192.57 on 9 October 2025 , and currently trades at $180.03

2020 Covid Pandemic

• NVDA stock fell 37.6% from a high of $7.87 on 19 February 2020 to $4.91 on 16 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 11 May 2020

2018 Correction

• NVDA stock fell 56.1% from a high of $7.23 on 1 October 2018 to $3.18 on 24 December 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 14 February 2020

2008 Global Financial Crisis

• NVDA stock fell 85.1% from a high of $0.99 on 17 October 2007 to $0.15 on 20 November 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 13 May 2016

Worried that NVDA could fall much more? You could take a look at the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.