Should Buy Nvidia Stock Now or Wait for a Dip as the AI Boom Accelerates

Nvidia just finished another outstanding year and the investors are looking at an over-the-top share price and asking themselves whether it is a golden chance of buying or not. With AI driving the extraordinary demand for its chips, along with super high expectations, the company brings both thrill and pressure in equal proportion.

Nvidia’s Blockbuster Numbers

Nvidia’s latest results make it very clear why it is at the forefront of investors’ thoughts. The share price jumped to an astonishing 39% in 2025 alone, and it was without a doubt propelled by AI-driven growth. The first nine months of the fiscal year 2026, which ended on 26^th October 2025, saw the company report a revenue increase of 62% as compared to the previous year.

Gross profit went up by 48%, and net income soared by a remarkable 52%, which highlights the impressive efficiency with which Nvidia is turning its demand into profit. However, what really caught attention was the management’s announcement of an estimated order backlog of around $500 billion, extending through the end of 2026.

The staggering figure not only affirms that Nvidia is the powerhouse behind the AI surge, but it also gives the company the rare luxury of having demand visibility that most of the market competitors can only dream of. In the rapid cycles of the industry, such signals of forward demand are truly giving reassurance.

Nvidia, the Enabler of the AI Gold Rush

One of the main factors driving Nvidia’s ascent is its almost complete dominance in GPUs over the competitors, as Nvidia is the ultimate leader in high-performance computing and the data center market behind the age of AI.

The last quarter saw Nvidia’s data center revenue accounting for nearly 90% of total sales, and this figure reflects how much the AI infrastructure is integrated and is important in Nvidia’s business model. As tech giants and startups are competing to build and scale AI systems, Nvidia’s GPUs have become essential hardware rather than optional upgrades.

Nvidia has transitioned into a key supplier for the AI industry globally due to the high demand of its chips. Now, Nvidia is the most powerful and direct investment for a publically-traded company that investors are looking at in the context of AI’s growth.

The Valuation Question Investors Can’t Ignore

Nvidia has evoked all the positives, and yet Nvidia’s valuation issue still remains the elephant in the room. The stock is trading at around 46 times its trailing earnings, which makes it expensive even by traditional metrics. Investors questioning how much upside remains is quite reasonable, specifically when Nvidia has the largest market capitalization among publicly traded companies.

However, one has to consider the context as well. Many high-quality AI firms are engaging in a fierce battle of steep valuations, and if one looks at Nvidia’s peers like Advanced Micro Devices, which is trading at 106 times the trailing earnings, then Nvidia’s price starts looking quite rational.

To be precise, it is not that exceptional businesses usually have high valuations, but that Nvidia’s growth, earnings, and market position make their multiple reasonable.

The Path of Getting in

For those investors who are not quite sure about placing all their bets in one go at these prices, perfectly timing the market is not quite realistic and not even necessary. One practical option is to use the dollar-cost averaging technique.

This is a plan where every time an investor invests a fixed amount regularly, irrespective of the price at that time. This way the psychological pressure of buying at once is not so great and the investor gets the chance to buy at a lower price if the market becomes volatile.

Dollar-cost averaging is a powerful weapon in the case of stocks like Nvidia, which are sharp in their swings because the underlying fundamentals are strong in the long run. By distributing one’s buying over time, an investor can gather slowly and with little risk of getting caught at an unfortunate high end of the market in the short run.

Should You Buy Nvidia Now or Wait?

The bottom line is that it really depends on your investment horizon and how much risk you can take. Nvidia isn’t exactly a cheap stock, but it’s still a good quality one with an unbeatable position in a revolutionary industry.

Those long-term investors, who are betting on AI’s further growth, may miss out on the entire growth period waiting for the perfect entry. On the other hand, if you’re a cautious investor, a steady buying strategy can provide a way to get in with the market being too immersed.

The narrative of Nvidia is still going on, and the share price could be volatile, but the business momentum behind it will still be strong and hard to ignore. For those who think of AI as the ultimate industry who will reshape it for the decades to come, Nvidia is still a long-term winner.