Nvidia is cheaper than Hershey while Fed volatility spikes — contrarian nibble on the AI king
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
| Symbol | Dir | T+1 | T+5 | T+20 |
|---|---|---|---|---|
| NVDA | LONG | -0.66% ✗ | — | — |
Price change since publication · updated Jul 12