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AI-generated trading idea · LONG · NVDA, SMH

Nvidia crashes to pre-AI prices while AI demand stays red-hot — contrarian bounce play on NVDA

Nvidia's stock has crashed so hard that it is now priced like it was before the AI boom. However, the broader AI infrastructure market is still growing rapidly, evidenced by a massive new public listing for chipmaker SK Hynix and options traders betting on a snapback rally.

Idea

Bloomberg reports that Nvidia has lost roughly $1 trillion in market value, pushing its valuation back to pre-AI boom levels. This massive sell-off is creating a situation where the stock might be heavily discounted. However, the underlying demand for AI hardware is still clearly present, as shown by SK Hynix planning a massive $28 billion US listing to capitalize on the AI wave. We are seeing a divergence where the broader market is panicking, but options traders are actively betting on a significant Nvidia rebound, viewing the sell-off as overdone given the company's record revenues.

What happened since

SymbolDirT+1T+5T+20
NVDALONG-1.22% ✗

Price change since publication · updated Jul 12

Key details

NVDASMHD1#ai#semiconductors#value#stock

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