Nvidia Stock Nears Bear Market: Why Fund Managers See a Golden Buying Opportunity

Nvidia's stock has tumbled toward bear market territory, but portfolio managers argue the selloff is a buying opportunity rather than a warning sign. The chipmaker's shares have fallen roughly 20% from their recent peak, yet fund managers point to resilient demand for its artificial intelligence chips, even amid political uncertainty and potential tariff disruptions. They argue that the company's dominant position in AI accelerators and data center GPUs remains intact, with major customers like Microsoft, Amazon, and Google continuing to expand their AI infrastructure. The recent decline, driven by concerns over export restrictions and valuation, has left Nvidia trading at a more attractive price-to-earnings ratio compared to its historical average. For investors, the key question is whether AI capital spending will hold up in a slowing economy. Many fund managers believe it will, citing the strategic importance of AI to corporate competitiveness. As one portfolio manager put it, 'You want to own the picks and shovels of the AI gold rush, and Nvidia is the ultimate supplier.' With the stock now priced for a more moderate growth scenario, bargain hunters see limited downside and significant upside if AI adoption continues at its current pace. The next earnings report will be a critical test of this thesis.