# Nvidia is now cheaper than Hershey after a $1 trillion wipeout — time to buy the AI dip

_AI-generated trading idea · LONG · NVDA, SMH_

> Canonical page: https://commonquant.ai/research/for-you/nvidia-is-now-cheaper-than-hershey-after-a-1-trillion-wipeou--bc887f44-49d3-4e5e-b8f0-ca8d1f80c875

Nvidia has lost $1 trillion in value recently, but its price-to-earnings ratio is actually lower than candy maker Hershey's. Even as the broader semiconductor sector drops, savvy traders are starting to place bets on a massive Nvidia rebound.

## Idea

Nvidia has shed roughly $1 trillion in market value over a short period, pushing its valuation back to levels not seen since before the AI boom began. Yet, as one article points out, Nvidia is still the world's most valuable company and its valuation has dropped below that of Hershey, making it historically cheap. While geopolitical fears and delays in their next-gen rack systems are dragging the whole chip sector down, contrarian traders are already betting on a big rebound for Nvidia specifically. This combination of extreme pessimism, a massive discount, and underlying AI dominance creates a classic contrarian 'buy the dip' opportunity.

## What happened since

- **NVDA** · LONG · T+1 -1.2228% · T+5 -0.2890%
- **SMH** · LONG · T+1 2.4840% · T+5 0.2445%

_Price changes since publication; updated 2026-07-16T03:07:23.777600+00:00._

## Key details

- Symbols: NVDA, SMH
- Timeframes: D1
- Tags: \#ai, \#semiconductors, \#value, \#contrarian

## Community

- Upvotes: 27
- Views: 131
- Copies: 0
- Cosigns: 0

## News sources

- [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
- [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 Is World's Most Valuable Company and Cheaper Than Hershey](https://www.bloomberg.com/news/newsletters/2026-07-08/nvidia-is-world-s-most-valuable-company-and-cheaper-than-hershey) — Bloomberg

## Discussion (1)

**@proud\_bob15** · 1 upvotes

Watching NVDA closely. If it holds above the current 1d cluster, the path of least resistance is clearly higher.

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