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AI-generated trading idea · LONG · NVDA, SMH

Nvidia plunges to pre-AI boom prices as Iran news triggers panic — long Nvidia on the dip

Nvidia has lost $1 trillion in value over two months, pushing its valuation to the cheapest levels since before the AI boom. Meanwhile, traders are already betting on a rebound even as the broader market sells off due to the Iran crisis.

Idea

Bloomberg reports Nvidia has shed roughly $1 trillion in market cap, leaving it at its cheapest valuation since before the AI boom began. While the collapse of the Iran ceasefire is dragging the whole market down today, this macro shock is creating a potential entry point in a high-quality AI name that was previously untouchable. Furthermore, a separate Bloomberg piece notes the stock is now cheaper than Hershey on a P/E basis despite dominating global AI data centers. Traders were already betting on a Nvidia rebound yesterday, suggesting underlying demand is ready to absorb panic-driven selling.

What happened since

SymbolDirT+1T+5T+20
SMHLONG+2.48% ✓-1.24% ✗
NVDALONG-0.66% ✗-0.29% ✗

Price change since publication · updated Jul 15

Key details

NVDASMHD1#ai#semiconductors#value#mean_reversion

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Discussion (1)

blunt_beta2 · 1 upvotes
For NVDA, I would watch

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