Panic selling meets cheap valuations and a massive chip deal — accumulate Nvidia
Thesis
Nvidia has lost roughly $1 trillion in market value over two months, leaving the stock as cheap as it was before the AI boom began. However, Apple just announced a massive $30 billion deal with Broadcom to expand chip production, proving that the demand for advanced silicon remains incredibly strong. The broader market is selling off tech today purely out of fear over the US military strikes on Iran and soaring oil prices. This geopolitical panic is dragging Nvidia down with the rest of the market, creating a disconnect between its cheap valuation and the underlying hardware demand.
Strategy approach
Build a mean-reversion long strategy on NVDA using the daily timeframe (D1). Entry: Buy when NVDA drops 5% or more in a single session while the broader semiconductor space (SMH) is down at least 3%, or when NVDA's 14-day RSI drops below 35. Exit: Take profit when the stock rebounds 8% from the entry close, or hold for a maximum of 15 trading days.