Rather than a disaster, the drop in Nvidia stock caused by DeepSeek looks like a terrific opportunity for long-term investors. As shown below, the forward price-to-earnings (P/E) ratio dropped sharply along with the stock price.

Nvidia Corporation's stock has dropped from its highs due to competition from China's DeepSeek and rising US-China trade tensions. Read more here.

Nvidia Corp. investors have typically rushed to buy the stock on any dips. But the mood since the DeepSeek-driven rout has been different, signaling that fears of a slowdown in AI spending aren’t going away.

A year ago, a screen of the S&P 500 placed Nvidia Corp. at the top of the list of companies that were expected to show the most rapid increases in revenue from 2023 through 2025. Now it is time to run the screen again,

Nvidia (NVDA -1.25%) stock has been one of the market's best performers in recent times, even posting the biggest gain last year in the Dow Jones Industrial Average with a 171% in