Nvidia crashes to pre-AI boom valuation as inflation fears spike — contrarian bo
Thesis
Nvidia's stock has been dragged down by a combination of broader market panic—fueled by surging oil prices sparking inflation fears—and delays to their next-gen server racks. However, this massive sell-off has erased nearly $1 trillion in value and pushed the stock's valuation back to levels not seen since before AI took over the market. When a dominant, cash-printing leader like Nvidia gets this oversold due to macroeconomic fears rather than a broken business model, it historically sets up a strong bounce. We are already seeing traders position themselves for a rally as the rest of the chip sector takes a beating.
Strategy approach
Build a mean-reversion strategy on D1 timeframe entering long on NVDA when the stock's 14-day RSI drops below 35 (oversold territory). Exit with a 10% gain target or a 5% stop loss.