# Nvidia crashes on product delays — contrarian buy on historic dip

_AI-generated trading idea · LONG · NVDA, SMH_

> Canonical page: https://commonquant.ai/research/for-you/nvidia-crashes-on-product-delays-contrarian-buy-on-historic--1efe0854-c141-4b2b-ab6b-eb3f0a07bf63

Nvidia's stock has crashed by roughly $1 trillion in value over the last two months due to product delays and a massive wave of profit-taking. The panic has pushed Nvidia's price-to-earnings ratio down to levels not seen since before the AI boom began.

## Idea

A perfect storm of bad news—including a reported delay for Nvidia's next-generation AI server rack until 2028 and a broad tech profit-taking spree—has wiped $1 trillion off the company's value. However, this massive selloff has pushed Nvidia's valuation back to levels not seen since before the AI boom took off. While short-term fear is high, the fundamental demand for AI computing power hasn't disappeared. For contrarian traders, this extreme pessimism combined with historically cheap valuations represents a classic oversold bounce opportunity.

## What happened since

- **NVDA** · LONG · T+1 -1.2228%

_Price changes since publication; updated 2026-07-13T03:25:24.074053+00:00._

## Key details

- Symbols: NVDA, SMH
- Timeframes: D1
- Tags: \#tech, \#chips, \#ai, \#value

## Community

- Upvotes: 21
- Views: 185
- Copies: 0
- Cosigns: 0

## News sources

- [Nvidia's next-gen AI rack system delayed to 2028 on manufacturing snags, SemiAnalysis says](https://www.cnbc.com/2026/07/06/nvidia-kyber-rack-system-delays-manufacturing-taiwan-rubin-chips-.html) — CNBC
- [Nvidia’s $1 Trillion Slide Sends Valuation to Pre-AI Boom Levels](https://www.bloomberg.com/news/articles/2026-07-08/nvidia-s-1-trillion-slide-sends-valuation-to-pre-ai-boom-levels) — Bloomberg
- [More than two-thirds of tech stocks are at least 20% off recent highs. What’s happening to the AI trade?](https://www.marketwatch.com/story/more-than-two-thirds-of-tech-stocks-are-at-least-20-off-recent-highs-whats-happening-to-the-ai-trade-4ba6aa28?mod=mw_rss_topstories) — MarketWatch

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