NVIDIA (NVDA) has plunged 16% this week, sparking debate on whether this dip offers a golden buying opportunity or a signal to remain cautious. With the stock hovering around the $120 mark, investors are questioning: Is this the moment to add shares, or could there be more downside ahead?

Why the Drop?

NVIDIA's sharp decline comes amid growing competition and a broader tech sell-off. The surprise AI breakthrough by DeepSeek has put pressure on NVIDIA's AI dominance, leading to investor uncertainty. Moreover, macroeconomic concerns have spurred a flight from high-valuation stocks.

Bull vs. Bear: Is $120 a Buy?

The Bull Case:

NVIDIA remains an undisputed leader in AI, gaming GPUs, and data center technology. Its AI chips power some of the most advanced machine learning models globally, and the company's strong R&D pipeline makes it a cornerstone of the tech ecosystem. Buying at $120 offers a chance to enter or average down at a more attractive price point.

The Bear Case:

Valuation concerns still loom large, and further downside is possible if competitors like DeepSeek continue gaining traction. A weak macroeconomic environment could push the stock below $110, offering an even better buying opportunity for patient investors.

What Analysts Say

Wall Street remains cautiously optimistic about NVIDIA’s long-term prospects, with price targets ranging between $135 and $180. Many believe the company will regain momentum once market jitters settle and innovation continues to drive growth.

Final Takeaway

If you're a long-term believer in NVIDIA's leadership in AI and semiconductors, $120 could be a compelling entry point. But if you're concerned about near-term volatility, waiting for a better entry might be prudent.