There was a time when chip manufacturer NVDA stock used to be one of the hottest stocks in the market, and at one point NVIDIA Corporation (NASDAQ:NVDA) had registered the sort of growth that seemed unstoppable. It had managed to zoom to $300 a share from $30 a share within a period of three years, but then came the slowdown.

Key Analysis

Last year, NVDA stock experienced a major drop and plunged to $124.50 a share as the confidence of the market collapsed due to a slowdown in growth. However, the stock has managed to mount a recovery and is currently trading at $172.

Those who are bullish about NVIDIA stock stated that the tech industry is going in a new direction, and this turnaround could well be the start of sustained growth over many years. The growth of the cloud industry, the internet of things, and artificial intelligence are channels that could further power NVIDIA’s growth. However, those with a bearish view believe that competition has intensified significantly in the chip manufacturing space and the trade war with China is going to further create problems for NVIDIA.

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NVDA stock is down 1% at $172 in Wednesday’s trading session.

On the face of it, there are elements of truth in the theories of both the bulls and the bears; however, an investor needs to look at the long-term prospects of the company. In that regard, there is ample proof that there are enough factors that could drive the company’s growth in the years to come. That being said, the near-term risks are very real, and it would be prudent for investors to be cautious about any investment in NVIDIA during that period.

The near-term risks make it hard for any investor or analyst to figure out the point at which the growth is going to rebound for NVDA stock.

What do you think?

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