Nvidia's $1 trillion rout: Do you buy or sell the stock here?

Nvidia's stock has lost roughly $1 trillion in market value in less than two months, now trading at 18 times forward earnings, its cheapest since early 2019. Analysts like Jessica Inskip and Vivek Arya recommend buying, citing a strong technical setup and a unique growth opportunity, despite concerns over margin pressure and competition.

Is Nvidia NVDA https://finance.yahoo.com/quote/NVDA/ stock too cheap to ignore? It's a question worth diving into at the moment. "The setup is really, really great from a technical perspective," StockBrokers.com strategist Jessica Inskip said on Yahoo Finance's Opening Bid https://finance.yahoo.com/video/nvidia-market-cap-sheds-1-trillion-its-more-of-a-rotation-than-a-correction-143213433.html video above . "It's a great buying opportunity. I think Nvidia is part of the AI infrastructure build-out. They are creating a moat. And there is certainly more to it. So I would be a buyer here." Nvidia has lost roughly $1 trillion in market value in less than two months. The stock is now trading at about 18 times forward earnings, below the S&P 500's ^GSPC https://finance.yahoo.com/quote/^GSPC/ forward price-to-earnings multiple of 21 times. This is the cheapest Nvidia stock has been since early 2019, before the AI boom erupted. In 2019, the tech company was still seen as a play on video game chips and bitcoin mining. The stock has tanked roughly 16% since hitting its all-time high on May 14 as investors have rotated into memory chip names like Sandisk SNDK https://finance.yahoo.com/quote/SNDK/ and Micron MU https://finance.yahoo.com/quote/MU/ . Several concerns are fueling the sell-off, Bank of America analyst Vivek Arya said, including: - Gross margin pressure from higher memory costs. - Custom ASIC competition. - Crowded investor ownership. - Unproductive use of cash in vendor financing versus stronger buybacks/dividends. Arya is staying the course, however, with a Buy rating on Nvidia. "Our analysis suggests that at Nvidia's current valuation, investors might already be implicitly discounting an unjustified ~30-35% headwind to 2027 and 2028 EPS estimates effectively delta between Nvidia and growth peer forward PE ," Arya said. "We strongly disagree with the EPS discount and see it as an enhanced Buy opportunity for a unique, durable growth franchise now trading at a seven-year low 18x forward PE." Others on Wall Street are also all in on Nvidia stock. About 95% of sell-side analysts rate Nvidia stock a Buy or Strong Buy, per Yahoo Finance data https://finance.yahoo.com/quote/NVDA/analyst-insights/ . There hasn't been a single downgrade on the shares this year. Brian Sozzi is Yahoo Finance's Executive Editor, host of the Power Players with Brian Sozzi podcast, and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi , Instagram , and LinkedIn . Tips on stories? Email brian.sozzi@yahoofinance.com. Click here for the latest technology news that will impact the stock market Read the latest financial and business news from Yahoo Finance