NVIDIA stock drops to $199 despite AI boom — analysts split on whether the chip giant is cheap or overvalued

NVIDIA (the company that makes the GPUs—specialized processors—that power AI systems) is trading at $199 per share, down from its 52-week high of $212.19, even as demand for AI infrastructure accelerates among cloud providers like Amazon and Microsoft.

The bull case: NVIDIA's data center business (which sells to companies building AI systems) still shows no sign of slowing down, and at current prices the stock sits well below recent highs despite the company's core business fundamentals improving.

For investors and business professionals: this signals a potential entry point if you believe AI infrastructure spending will continue, but it also reflects uncertainty about whether NVIDIA's valuation has peaked—meaning the risk-reward math has shifted compared to months ago when the stock hit $212.