Nvidia's Momentum Reversal Looming: Wait for Dips Before Adding

Nvidia's recent recovery doesn't change its attractiveness, thanks to its leadership in the AI accelerator/CUDA segment. Despite the AI bubble bursting, Nvidia remains a strong player in this market, making it a good investment choice for those looking to buy. However, it's recommended to wait for dips before adding to the position.

Nvidia's recent stock recovery has not diminished its appeal as a leader in the AI accelerator and CUDA segments. Despite the recent AI bubble burst, Nvidia remains a formidable player in the market, making it a solid investment choice for those looking to buy. However, investors are advised to wait for dips before adding to their positions.

Nvidia's strength is evident in its partnerships and technological advancements. At the GTC Paris event, Nvidia announced significant quantum-related developments with HPC application powerhouse Ansys and its new GB200 NVL72 systems [1]. Ansys is using Nvidia's CUDA-Q quantum computing platform on the Gefion supercomputer to advance quantum algorithms for fluid dynamics applications. This partnership underscores Nvidia's leadership in hybrid quantum-classical computing, which is crucial for the future of engineering disciplines like computational fluid dynamics.

Moreover, Nvidia's GB200 NVL72 systems are recognized as the leading architecture for quantum computing-related development. These systems enhance five key quantum computing workloads, including developing better quantum algorithms, designing low-noise qubits, generating quantum training data, exploring hybrid applications, and unlocking quantum error correction [1]. Nvidia's dominance in the quantum simulator market is further solidified by its ability to output quantum training data 4,000x faster than CPU-based techniques, a significant advantage in the AI and quantum computing realms.

The AI market's volatility does not detract from Nvidia's core strengths. While the tech bubble analogy for Nvidia falls short due to differences in underlying growth factors and customer bases, Nvidia's demand remains robust and less likely to evaporate [3]. Its forward P/E ratio is significantly lower than that of Cisco during the dot-com bubble, indicating a more sustainable valuation.

Investors should also consider the broader market conditions. Despite recent market volatility, including concerns over the ongoing conflict between Israel and Iran, the market is still in an ongoing consolidation process. The bulls continue to hold support at the 20-DMA, suggesting that the market is not in a full-blown downturn [3].

In conclusion, Nvidia's leadership in AI accelerators and CUDA, along with its advancements in quantum computing, make it a strong investment choice. While investors should be cautious and wait for dips, Nvidia's resilience and technological prowess position it as a solid long-term investment.

References:
[1] https://www.hpcwire.com/2025/06/23/in-case-you-missed-it-nvidia-punches-up-quantum-effort/
[3] https://www.investing.com/analysis/the-tech-bubble-analogy-for-nvidia-falls-short-200662404