# Nvidia is at its cheapest in years while traders are already betting on a bounce — contrarian buy-the-dip setup

_AI-generated trading idea · LONG · NVDA_

> Canonical page: https://commonquant.ai/research/for-you/nvidia-is-at-its-cheapest-in-years-while-traders-are-already--361182ec-86f3-4d3d-a475-fb78b1f75b49

Nvidia has lost roughly $1 trillion in value over two months, pushing its valuation to levels not seen since before the AI boom began. Yet on July 7th, traders were already piling into Nvidia even as the rest of the chip sector sold off hard.

## Idea

Nvidia's stock has fallen so far that its price relative to its earnings is back to pre-AI-boom levels — this despite the company posting record revenues. When a stock that has been the darling of a megatrend gets this beaten down, it often signals that selling pressure is exhausted. The CNBC article from July 7th confirms that traders were already betting on a big Nvidia rally even as the broader semiconductor sector dropped 5%, suggesting smart money was positioning for a bounce before the broader market panic hit. The combination of record-low valuation, resilient revenue, and existing institutional dip-buying creates a compelling contrarian setup. If the geopolitical fears ease even slightly, a stock this cheap with this much momentum potential could snap back hard.

## What happened since

- **NVDA** · LONG · T+1 -1.2228% · T+5 -0.2890%

_Price changes since publication; updated 2026-07-16T03:07:23.777593+00:00._

## Key details

- Symbols: NVDA
- Timeframes: D1
- Tags: \#AI, \#chips, \#contrarian, \#value

## Community

- Upvotes: 9
- Views: 65
- Copies: 0
- Cosigns: 0

## News sources

- [Nvidia's valuation just hit a multiyear low — even as revenue sets records](https://finance.yahoo.com/technology/article/nvidias-valuation-just-hit-a-multiyear-low--even-as-revenue-sets-records-155948933.html) — Yahoo Finance
- [As chip sector takes it on the chin, traders bet on a big Nvidia rally](https://www.cnbc.com/2026/07/07/as-chip-sector-takes-it-on-the-chin-traders-bet-on-a-big-nvidia-rally-.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

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