Nvidia (NASDAQ: NVDA) was one of the most coveted stocks on the market for quite some time thanks to its rapid growth. Much of that growth in Nvidia stock is due to booming demand for the graphics cards that power a variety of applications ranging from gaming computers to data centers and vehicles.

However, the high-flying graphics card specialist fell from grace starting in 2022, down 57% year to date. The loss of momentum in the key gaming GPU (graphics processing unit) business, as well as restrictions by the U.S. government on sales of data center chips to China, are going to weigh on Nvidia's performance in the short run. Of course, Nvidia has enough catalysts in the bag to turn its fortunes around in the long run.

But investors may want to stay away from this Nasdaq stock until there are clear signs of a turnaround in the company's business. That's especially true considering that Nvidia continues to trade at an expensive 47 times trailing earnings.

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Source Fool.com