If you’ve checked your trading app lately, you’ve probably seen NVIDIA (NVDA) swing from around $90 to almost $170 in a matter of weeks. That’s not a one-off freak move—it’s basically NVIDIA’s personality. Since 2016, the chart has looked more like a heart-rate monitor than a straight line . So why does it bounce so hard, and if you’re 17 with a couple hundred bucks from your summer job, should you even care?
F.1 - Nvidia Price History - Source
The Root of the Chaos
Let’s begin by getting to the root and the main reasons that allow for the volatility of the 4 trillion dollar company’s stock day-in and day-out. Arguably one of the largest and most relevant movers of Nvidia today, the AI hype and headlines that you see in the news are generally indicative of what happens to Nvidia’s numbers. Say for example the recent development of Chinese models - ex. DeepSeek R1 - where the hype around a “more powerful” ai engine that requires a mere portion of the power it takes to run Nvidia comes into the market; well, now traders panic in and pile out within the lapse of seconds thus, causing widespread panic and a major fluctuation in prices. When DeepSeek first came out, it led the trillion dollar company to drop ~40 dollars per stock - a moment for chaos. But don’t let these headlines be exclusively on large news stations. One tweet can move the stock 8% before lunch- a simple, influential tweet has the power to move the stock an incredible amount in minimal time, further revealing that volatility.
Second, supply-chain drama constantly causes investors to “act smart” and act irrationally or crazy - buying and selling extensive amounts of the stock. Tariffs, TSMC 3-nm capacity fights with apple, overheating RTX 5090s - each of these headlines bears the potential to upheave the price of the stock. A fragile geopolitical environment + constant supply chain talk = volatility. When Trump adds a tariff on Chinese goods and China reciprocates, Nvidia share prices go down. Why? - because now less chinese are buying GPUs and revenue is massively cut.
Next, the crypto currency landscape is a breeding ground for volatility. Basically, mining ethereum requires a truck load of power - delivered by who? - none other than Nvidia. These world-renowned GPUs are under constant use when crypto mining became a thing - 2018’s Nvidia saw an critical influx of GPU orders. But as crypto became less mainstream, Nvidia’s source of income escaped causing a crash in revenue directly with the crash in crypto prices. Nevertheless, crypto sentiment leaks into the share price today.
Should You Actually Buy Some?
Here’s the straight talk: if you need the money for concert tickets next month, skip it. One bad headline can wipe out your cash that fast. But if you’re cool with locking the money away for a few years—say until after college—owning a tiny piece of NVIDIA isn’t crazy. You don’t have to buy a full share at $135 or whatever it is today; apps like Fidelity or Cash App let you grab $25 or $50 slices. Put in the same small amount every month no matter what the price is doing. That way you buy more shares when it dips and fewer when it spikes, and you don’t have to stare at the chart all day. Decide up front how much pain you can handle—maybe you’ll sell if it drops 20 %—and stick to that rule so you don’t panic at 2 a.m.
Where Could This Thing Go?
Looking ahead, NVIDIA still has a lot going for it. The new Blackwell GPUs are already shipping to Microsoft and Oracle for giant AI clusters, and countries like Saudi Arabia are signing huge contracts for “sovereign AI” projects. Analysts think the company’s tech lead over AMD and Intel is still about two years wide. On the flip side, tougher export rules could cut billions in China sales, and Amazon, Google, and even Apple are trying to build their own chips so they don’t have to pay NVIDIA’s prices forever. If the economy slows and interest rates stay high, even a great business can see its stock dragged down with everything else.
Bottom line: NVIDIA is like that super-smart friend who sometimes shows up late and sometimes brings pizza for everyone. If you can deal with the drama and you’re only using money you don’t need right away, sprinkling a little into your long-term plan is fine. Just don’t dump your entire summer job savings into one stock, no matter how cool ray-tracing looks in the next Call of Duty
Sources:
Why Is Nvidia Stock Going Down Today? Full Breakdown | EBC Financial Group
Why Nvidia Stock Jumped in a Wildly Volatile Day for the Market | Nasdaq
What Is Driving Nvidia's Massive Stock Volatility | The Motley Fool
How Nvidia Stock Could Drop to $65: A Market Analysis
Dan Niles Explains Why He Turned Bullish on NVIDIA (NVDA)
Analytical NVDA Stock Forecasts from 2025 to 2030 | Market Pulse