Long-term investing is the key to sustainable returns in the stock market because it smooths out short-term volatility and allows a company's fundamental value to shine through. Tech giant Nvidia (NASDAQ: NVDA) has been at the forefront of generative artificial intelligence (AI) growth.

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's stock has seen a recent dip, attributed to increased competition from Chinese AI startup DeepSeek. Historically, Nvidia's stock rebounds after a drop, often reaching new highs. Positive updates from Nvidias largest customers and continued strong performance in AI investments suggest promising future growth,

If you're going purely based on history, the trends seen in the stock chart above would suggest that Nvidia stock will be headed higher after it reports earnings on Feb. 26. But smart investors know all too well that past performance shouldn't be used as your sole barometer.