Nvidia Corp. (NASDAQ:NVDA) plunged more than 8% Thursday, extending its decline since Oct. 6 to nearly 24% and wiping approximately $1.4 trillion off its market value just 12 days before earnings.

The latest selloff comes as Democrats’ midterm election victories raise fears of tighter restrictions on data-center construction, adding to concerns over the enormous cost of the AI boom.

Yet Wall Street’s profit forecasts are rising, leaving Nvidia trading at less than 12 times projected fiscal 2028 earnings. Is the selloff creating a buying opportunity?

The Bull Case: Customers Still Can’t Get Enough Chips

For investors considering buying the dip, Nvidia’s strongest argument is that demand for its products still exceeds what it can manufacture.

The company expects revenue to grow approximately 70% next fiscal year, and says the forecast is limited by chip supply, not a shortage of customers.

Amazon (NASDAQ:AMZN) has committed to deploying another two million Nvidia GPUs, while Nvidia’s next-generation Rubin platform has already secured orders from major cloud providers.

Analysts have raised their fiscal 2028 earnings estimates by 24% over the past 90 days, to $15.91 per share, even as the stock has fallen nearly as much since October.

At approximately $183, Nvidia trades at roughly 20 times expected fiscal 2027 earnings and just 11.5 times the following year’s projections.

Investor Josh Brown argued on CNBC Tuesday that Nvidia is now “selling at a discount to value stocks.”

The Bear Case: Who Pays for the AI Boom?

The problem may not be demand for Nvidia’s chips, but whether its customers can finance and build the infrastructure needed to deploy them.

Melius Research recently slashed its target from $420 to $315, warning that technology giants may need to raise hundreds of billions through stock and bond sales.

“The amount of paper is so large it has become the primary risk,” the firm wrote.

Melius maintained its Buy rating but warned that financing pressures could weigh on semiconductor valuations.

Nvidia itself warns in its quarterly risk disclosures that power shortages, financing constraints and regulatory hurdles to data-center construction could delay customer deployments and hurt revenue growth.

Those are precisely the vulnerabilities investors are reassessing following the midterms, particularly in Texas, where the governor-elect has threatened a freeze on new data centers.

Traders Now Favor Apple Over Nvidia

The selloff has also dramatically shifted expectations on Polymarket, where traders now give Apple (NASDAQ:AAPL) a 69% chance of finishing 2026 as the world’s most valuable company, against just 31% for Nvidia.

Nvidia was the overwhelming favorite in October, when its odds briefly exceeded 80%.

The contract, which has attracted approximately $9.8 million in trading volume, settles on which company has the largest market capitalization at the December 31 close.

Nvidia’s November 17 earnings could provide an opportunity to reverse that sentiment. Analysts expect approximately $109 billion in revenue and $2.47 in adjusted earnings per share.

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