Nvidia plunges to pre-AI boom prices as Iran news triggers panic — long Nvidia o
Thesis
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.
Strategy approach
Build a rule-based strategy on D1 timeframe that enters long NVDA when the stock price is 25% or more below its 50-day high and the daily RSI(14) is below 35 (oversold territory). Exit if the price rises 15% from the entry price, or if it drops an additional 10% (stop loss). Hold for a maximum of 30 trading days.