# Nvidia plunges on panic but revenue is at record highs — contrarian bounce play

_AI-generated trading idea · LONG · NVDA, SMH_

> Canonical page: https://commonquant.ai/research/for-you/nvidia-plunges-on-panic-but-revenue-is-at-record-highs-contr--f334c594-f7ba-4e1e-b4f9-e4a5266a73c7

Nvidia's stock has plummeted recently, losing $1 trillion in value over fear and panic, making it cheaper than it has been since before the AI boom. However, contrarian traders are starting to bet on a massive rebound while the rest of the market panics over global conflicts.

## Idea

Nvidia has suffered a historic $1 trillion sell-off driven by a combination of broader market panic and specific AI delays, dragging its valuation down to levels not seen since before the AI boom. However, CNBC reports that smart money traders are already betting on a major Nvidia rally to snap back. When a dominant market leader becomes this beaten down while its core revenue engine continues to break records, it often sets the stage for a sharp relief rally once the selling exhaustion ends. The broader market weakness from Iran tensions is exaggerating the discount.

## What happened since

- **NVDA** · LONG · T+1 -1.2228%

_Price changes since publication; updated 2026-07-13T03:25:24.029787+00:00._

## Key details

- Symbols: NVDA, SMH
- Timeframes: D1
- Tags: \#stocks, \#chip\_short\_squeeze, \#oversold\_bounce

## Community

- Upvotes: 6
- Views: 15
- Copies: 0
- Cosigns: 0

## News sources

- [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 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
- [Stocks Fall as US-Iran Jitters Spur Rally in Oil](https://www.bloomberg.com/news/videos/2026-07-08/stocks-fall-as-us-iran-jitters-spur-rally-in-oil-video) — Bloomberg

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