Prediction: Nvidia's Stock Correction Will Lead to Outsized Gains in the Second Half of 2024
Beginning in January 2023, it seemed like Nvidia (NASDAQ: NVDA) stock went straight up for almost 18 months. There was good reason for that as investors piled in to the company that has become the face of a dramatically increasing artificial intelligence (AI) sector.
But no stock goes straight up forever, and valuation still matters. A correction in the stock was inevitable and finally occurred over the last month. Nvidia shares recently traded as much as 13% below the closing record high set on June 18. And buying quality stocks in periods of corrections or bear markets is one of the best ways to generate market-beating returns.
The recent pullback isn't the first time Nvidia investors dragged the stock lower by taking profits. In the second half of 2022, Nvidia's sales plunged nearly 20% compared to the prior-year period as chip demand from gaming and cryptocurrency-mining users crashed. That helped lead to a sell-off that knocked Nvidia shares down by more than half in 2022.
Source Fool.com
