Nvidia has lost nearly half its value since its peak. Is it time to buy?
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As graphics chip maker Nvidia (NASDAQ:NVDA) gears up for its quarterly earnings next week, the stock sits nearly 50% off an all-time high reached late last year, with a 40% drop happening so far this year alone. 
NVDA reached its all-time trading high of $346.47 last November, as high demand and a global chip shortage fueled interest in the stock. Since then, worries about a lagging economy and the prospects of higher interest rates have weighed on shares, leaving them hovering near their 52-week trading low.
Still, even though the stock has been washed lower by Wall Street's general sell-off in 2022, Nvidia still remains in a prime position to take advantage of the demand in the semiconductor market. Given its sharp decline in recent months, does NVDA's long-term prospects make it a buy at these levels?
Chip Shortages
Semiconductors have become one of the most essential pieces of technology with applications across multiple consumer products. Computer chips represent key components to smart phones and computers, of course, but also play surprisingly important roles in everything from televisions to household appliances to electric cars.
Playing into this trend, NVDA is one of the worldâs most prominent producers of these chips. Additionally, the global demand for semis far exceeds the current capacity to produce the chips. This dynamic places NVDA and its rivals in a position to capitalize on a market imbalance.
Meanwhile, industry insiders expect this trend to continue at least for several more years. Intel CEO Pat Gelsinger told CNBC recently: âWe believe the overall semiconductor shortage will now drift into 2024.â
Whatâs Under the Hood
What do the fundamentals say about NVDA? NVDA posts a gross profit margin of 64.93%, greater than the sector median of 50.38%. NVDA also has annual revenue growth of 61.4% -- far outstripping the industry median of 20.1%. 
While NVDA shares have seen significant declines in recent months, the stock still outpaces the broader market on a 12-month timeline. NVDA is 28% higher over a one-year trading period, whereas the SPDR S&P 500 Trust ETF (SPY) is down 2.4%. Looking further out, NVDA has jumped 468% over five years, while SPY is up 72%.
Is NVDA a Buy?
The overwhelming stance on Wall Street is that NVDA has bullish prospects. Of the 44 analysts surveyed by Seeking Alpha, 27 have tagged the with a Strong Buy rating. Another eight have labeled it as a Buy.
Meanwhile, only one analyst has listed NVDA as a sell and eight others placed it as a Hold. See break down below:

Quantitative measures paint a more cautious picture. Seeking Alpha's Quant Ratings view the stock as a Hold. NVDA gets a stellar A+ for profitability and a sold B+ for growth. However, it receives a B- for momentum and an F for valuation.
While the majority of the market experts appear bullish about Nvidia, Seeking Alpha contributor Tech Stock Pros outlines the bearish case, citing its exposure to the foundering crypto market.
Khaveen Investments, another Seeking Alpha contributor, provides a more optimistic stance, highlighting the firm's strong capital structure and financial strength.