Jensen Huang Shouted "Buy the Dip," But...Nvidia (NVDA) Rises 4% in 3 Months

▲ Nvidia (NVIDIA)

Nvidia (NVDA) shares have risen by only about 4% in approximately three months since Jensen Huang's "buy the dip" remark.

According to Nasdaq on August 31 (local time), Nvidia CEO Jensen Huang told investors to "buy at a discounted price" on June 8 when AI-related stocks were undergoing a correction. Since then, Nvidia's stock price has risen by approximately 4%. This is similar to the S&P 500's return over the same period.

A diversified investment strategy in major AI companies performed better than investing only in Nvidia. A basket that invested the same amount in Nvidia, Microsoft (MSFT), Amazon (AMZN), and Alphabet (GOOG) rose by approximately 8%. Microsoft's 24% surge boosted the returns. Amazon rose by 8%, while Alphabet fell by 5%.

However, analysts say it is too early to evaluate Huang's judgment based on only about three months of performance. Huang's recommendation to buy was based on his conviction in the long-term growth of the AI industry, rather than short-term stock price movements. Nvidia's Q2 2027 fiscal year revenue increased by 18% from the previous quarter. Compared to the same period last year, the growth rate reached 106%. These figures were presented as evidence of strong AI chip demand.

The price-to-earnings (P/E) ratio was also cited as an indicator supporting Huang's "buy the dip" argument. Nvidia's P/E ratio was 17.5x, lower than its five-year average of 23x. It was also lower compared to the S&P 500's 25x. For investors considering long-term AI investments, Huang's remarks at the time are still noteworthy. However, in terms of short-term performance, Nvidia did not outperform the basket composed of major AI stocks.

[Article Key Summary]

-Nvidia's stock price rose by approximately 4% after Jensen Huang recommended "buying the dip" on June 8.

-An AI basket with equal weighting in Nvidia, Microsoft, Amazon, and Alphabet rose by approximately 8% during the same period.

-Nvidia's Q2 2027 fiscal year revenue increased by 106% year-over-year, and its P/E ratio was 17.5x, below its 5-year average of 23x.

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