Nvidia Stock Is Marching Higher Again. Is It Time to Buy?

Markets remain volatile as investors and traders continue to digest the potential effects of a global trade war as nations respond to President Trump's tariff rollout. The stock of semiconductor giant Nvidia (NASDAQ: NVDA) has begun to rebound, though.

Shares were higher again today by as much as 5%. While the stock pared that gain, Nvidia shares have still been on a positive trend since last Friday. Uncertainty around the tariff situation remains, but Nvidia should still be a long-term winner despite the short-term market turbulence.

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Even with this week's rebound, Nvidia stock is still lower by more than 25% year to date. Some large investors seem to think it has bottomed. Portfolio manager and widely followed investor Cathie Wood added over 340,000 shares on Monday and Tuesday, reports Barron's.

Reasons to buy Nvidia

There are several concrete reasons to follow Wood into the trade. Nvidia remains the artificial intelligence (AI) hardware leader. Even if large tech companies throttle back current capital spending plans for data center capacity, Nvidia will retain a meaningful amount of business. Revenue growth may slow, but expansion is still in the cards.

Nvidia is also now trading at a more reasonable valuation than late last year. A price-to-earnings (P/E) ratio below 22 based on this year's estimated earnings is relatively cheap for this tech leader. That also gives the stock some buffer if estimates have to be cut.

Nvidia's business is about more than just AI chips. Robotics, gaming, and self-driving vehicle software contribute to its sales. Long-term investors can benefit from the tariff-induced market volatility. Nvidia is one name that can bring long-term gains with enough patience.

All this means now is a good time for investors to follow Cathie Wood's lead and buy Nvidia stock.

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*Stock Advisor returns as of April 5, 2025

Howard Smith has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.