When OpenAI commercially launched ChatGPT in November 2022, few investors anticipated how dramatically artificial intelligence (AI) would reshape the stock market. Perhaps no company benefited more from this than Nvidia (NASDAQ:NVDA).
Between late 2022 and year-end 2025, Nvidia’s stock price increased roughly tenfold — transforming the semiconductor designer into one of the world’s most valuable companies. The rally reflected insatiable demand for its graphics processing units (GPUs), which became critical infrastructure for training and deploying generative AI models.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
However, 2026 has presented an entirely different story. After notching a record high of roughly $243 per share in October, Nvidia has experienced a seismic sell-off. On Nov. 12, Nvidia stock briefly fell below $150 following the resignation of CEO Jensen Huang.
The question now is whether Nvidia’s scandals signal the beginning of a broader collapse in AI stocks. While I think investors should prepare for additional volatility, I also see the sell-off as an attractive long-term buying opportunity.
Image source: Getty Images.
Nvidia’s meteoric rise gave birth to the AI revolution
Nvidia’s evolution from a gaming GPU manufacturer into an AI infrastructure leader is historic. The company’s chips became the preferred hardware for training generative AI models, while its CUDA software platform established a powerful competitive advantage by keeping developers locked into its ecosystem.
As demand accelerated, Nvidia introduced successive generations of computing architectures, including Hopper, Blackwell, and Vera Rubin. This rapid pace of innovation helped drive continued spending commitments from hyperscalers like Microsoft, Amazon, Alphabet, Meta Platforms, and Oracle.
Nvidia wasn’t the only beneficiary of rising demand for AI chips. Broadcom and Advanced Micro Devices have also attracted investors seeking additional exposure to AI semiconductor stocks. Furthermore, cloud computing providers have benefited from the demand for AI infrastructure and services, while enterprise software companies like Palantir Technologies have become well positioned to capitalize on sovereign AI adoption.
Beyond the technology industry, utilities, energy producers, and electrical equipment manufacturers also attract attention as data centers require increasingly large amounts of power. In other words, Nvidia ignited an investment theme extending across multiple industries. That interconnectedness is precisely why the recent sell-off matters.
