Nvidia's (NASDAQ: NVDA) stock has dropped 13% over the past month. The company's share price has fallen alongside declines in fellow chip stocks like Advanced Micro Devices, ARM Holdings, Taiwan Semiconductor Manufacturing Company, and ASML Holding NV.

On July 17, these companies' stocks fell victim to reports that the Biden Administration was considering imposing more stringent sanctions on China's access to advanced chips. Then, a massive outage for cybersecurity firm CrowdStrike on July 19 caused mayhem worldwide, crashing countless systems and exasperating the tech market sell-off.

While falling stock prices can be concerning, they can also create attractive investment opportunities. A tumbling share price has boosted the value of Nvidia's shares, with its price-to-earnings (P/E) ratio declining 13% in 30 days. Meanwhile, the company maintains massive potential over the long term as it continues to profit from its dominant role in tech and artificial intelligence (AI).

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Source Fool.com