1 Big Reason to Buy Nvidia Stock on the Dip
Nvidia (NASDAQ: NVDA) has been in red-hot form this year with eye-popping stock gains of 188% as of this writing. However, shares of the company recently have been in pullback mode thanks to export restrictions imposed by the U.S. Department of Commerce on the sales of its data center chips to China.
Nvidia stock fell nearly 10% over the past week. The Commerce Department says that restrictions will be imposed on the sales of Nvidia's advanced artificial intelligence (AI) chips -- the H800 and the A800 -- to Chinese customers in the next few weeks. It is worth noting that the agency banned the sales of Nvidia's flagship H100 processor to China last year, which is why the chipmaker came up with a scaled-down version of its AI processors to meet government regulations.
However, the new rules mean that Nvidia will not be able to sell those chips to China anymore. But savvy investors may want to look at the bigger picture and consider buying Nvidia stock following its pullback. Let's look at the reasons why.
Source Fool.com
