Nvidia hits multi-year valuation lows while traders buy the dip — momentum rever
Thesis
A massive two-month selloff has erased $1 trillion from Nvidia and pushed its valuation back to pre-AI boom levels, despite the company continuing to set revenue records. Today, as broader markets tumble on news of US-Iran strikes, Nvidia is bucking the trend and fighting into the green while the rest of the chip sector bleeds. Connecting the extreme valuation drop with the current market divergence, it is clear smart money is using the broader geopolitical panic to aggressively accumulate the stock at multi-year discounts.
Strategy approach
Build a rule-based strategy that enters long NVDA on D1 when SMH (VanEck Semiconductor ETF) is down >1.5% on the day, but NVDA closes positive (green). Exit condition: 8% profit target or 5% stop loss. Suggested symbols: NVDA.