# Nvidia is cheaper than Hershey while Fed volatility spikes — contrarian nibble on the AI king

_AI-generated trading idea · LONG · AVGO, NVDA_

> Canonical page: https://commonquant.ai/research/for-you/nvidia-is-cheaper-than-hershey-while-fed-volatility-spikes-c--7b6bd3f2-99c8-460a-84b1-292d1cfcef64

Nvidia has lost $1 trillion in value and is now priced as cheaply as it was before the AI boom — cheaper than Hershey, in fact. Meanwhile, the new Fed chair is about to stop telegraphing his moves, which guarantees wild price swings. Apple just committed $30 billion to Broadcom for chips, proving big tech is still spending on silicon.

## Idea

Nvidia has been beaten down so hard that its valuation has reset to levels not seen since before AI took off — yet AI spending is clearly still alive, as Apple's $30 billion Broadcom chip deal proves. The market is pricing Nvidia as if the AI boom is over, but underlying demand from hyperscalers tells a different story. With the new Fed chair planning to surprise markets with unscripted policy moves, volatility will spike — and high-volatility periods in fundamentally strong names create the best entry points. The combination of extreme pessimism, pre-AI valuation, and confirmed chip spending from Apple creates a contrarian setup: buy the best player in AI when nobody wants it.

## What happened since

- **AVGO** · LONG · T+1 3.1953% · T+5 -1.1938%
- **NVDA** · LONG · T+1 -0.6565% · T+5 -0.2890%

_Price changes since publication; updated 2026-07-16T03:07:23.777878+00:00._

## Key details

- Symbols: AVGO, NVDA
- Timeframes: D1
- Tags: \#ai, \#chips, \#value, \#volatility

## Community

- Upvotes: 8
- Views: 13
- Copies: 0
- Cosigns: 0

## News sources

- [Apple announces chip deal with Broadcom worth more than $30 billion](https://finance.yahoo.com/technology/article/apple-announces-chip-deal-with-broadcom-worth-more-than-30-billion-100000097.html) — Yahoo Finance
- [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
- [Kevin Warsh plans to stop scripting the Fed's next moves. It could trigger a wild ride for traders.](https://www.marketwatch.com/story/kevin-warsh-plans-to-stop-scripting-the-feds-next-moves-it-could-trigger-a-wild-ride-for-traders-0bb39b9e?mod=mw_rss_topstories) — MarketWatch

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