Shares of semiconductor giant Nvidia (NASDAQ:NVDA) have been trading in the green for the past couple of days. Reports suggest the ongoing supply chain bottlenecks in graphics processing units (GPUs) will be easing up, potentially kick-starting a rally in NVDA stock.

In January, leading tech publications such as Tom’s Hardware reported a drop in GPU prices. Moreover, prices have gone down an average of 30% in the past three months. Hence, it appears GPU shortages may finally be coming to an end.

Several of Nvidia’s high-end processors are returning to shelves at popular retailers. Moreover, the additional markup users were paying for GPUs is coming down significantly on eBay (NASDAQ:EBAY) and other sites.

The development is a major relief for Nvidia stockholders, which had seen more than a 15% drop in share prices. Nevertheless, the global chip shortage is evolving, especially with new coronavirus cases in China and other macroeconomic headwinds.

Nvidia has been resilient despite the challenges presented by the semiconductor shortage. Its year-over-year revenue growth in 2021 was a whopping 61%, which is more than 30% higher than its five-year average.  Similarly, its free cash flow has also grown aggressively over the past year with a double-digit increase in its FCF margin.

Considering the enterprise’s leadership in the provision of software and processors, it’s in for another strong showing this year. Most of its users have yet to upgrade to its latest processors, which points to a healthy upside ahead. Therefore, NVDA stock should continue on its positive trajectory in the long run, despite the transitory market turbulence.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines