Nvidia Stock Stalls at Record Low: Will It Recover Like Before?

Nvidia's stock hasn't closed at a record high since May 14, when it finished at $235.74. This was 87 trading days ago, about four months. Shares now sit near $215 as of this writing, about 9% below that mark.

The company has experienced several droughts like this in the past. Since reclaiming its 2007 peak in 2016, Nvidia's stock has gone 60 or more trading days without a record close seven times. Five of those stretches ended at new highs within about six months, while the other two turned into bear markets that cut the stock by more than half.

One key difference between these droughts is Nvidia's revenue growth. In each case where the stock quickly recovered, sales continued to climb. However, in the two instances where the stock fell significantly, revenue declined as well.

Nvidia's recent performance suggests a different outcome. The company has seen accelerating revenue growth over the past four quarters, with year-over-year growth rates increasing from 62% to 73%, then 85%, and now 106%. Management expects this trend to continue, with revenue growing about 70% in fiscal 2028.

Given these numbers, it seems unlikely that Nvidia will follow the same path as its two previous long droughts. The stock remains a buy at this level.