Undeniably, Nvidia Corp (NASDAQ:NVDA) continues to be emblematic of the extraordinary paradigm shift that is artificial intelligence. In the trailing six months, NVDA stock has gained nearly 74%. However, since around early August, the equity has largely stagnated. That might be viewed as a warning by most, but statistically, investors tend to buy the dips. As such, the lull arguably presents an enticing opportunity for bullish contrarians.
Of course, everyone who enters into the trade must be aware of the risks. While Nvidia has had an incredibly strong run of financial results, there are also rising concerns about whether it can keep up this mercurial pace. At some point, the juice may no longer be worth the squeeze — and that could lead to a negative readjustment of the premium attached to NVDA stock.
