Shares of Nvidia (NASDAQ: NVDA) gained ground on Wednesday, climbing as much as 5%. As of 12:42 p.m. ET, the stock was still up 4.4%. The catalyst that sent the artificial intelligence (AI) chipmaker higher was news that strong demand for its processors will likely continue.

When a stock price moves, so does the value of the company. In the case of Nvidia, the company's cratering share price has resulted in as much as $600 billion of lost market capitalization. On the surface, this looks horrific. However, as it often is the case with investments driven by overwhelming emotions, there's more than meets the eye.

Nvidia Corp.’s stock fell Monday as investors weighed the potential for tariffs to impact chip companies and continued to assess the fallout from DeepSeek.

Nvidia's strong financials and revenue growth, the popularity of its products, and the diverse range of applications for its chips put the company in a position to prosper for years to come, making its stock an excellent long-term AI investment. And now is a good time to buy shares.

Nvidia (NASDAQ:NVDA) stock received quite a shock last week when the Chinese tech company DeepSeek announced that it had successfully developed