Nvidia is now cheaper than Hershey after a $1 trillion wipeout — time to buy the
Thesis
Nvidia has shed roughly $1 trillion in market value over a short period, pushing its valuation back to levels not seen since before the AI boom began. Yet, as one article points out, Nvidia is still the world's most valuable company and its valuation has dropped below that of Hershey, making it historically cheap. While geopolitical fears and delays in their next-gen rack systems are dragging the whole chip sector down, contrarian traders are already betting on a big rebound for Nvidia specifically. This combination of extreme pessimism, a massive discount, and underlying AI dominance creates a classic contrarian 'buy the dip' opportunity.
Strategy approach
Build a mean-reversion strategy on NVDA using the Daily (D1) timeframe. Entry Condition: NVDA's 14-day RSI drops below 35 while the broader semiconductor ETF (SMH) is also down at least 5% over the last 20 trading days. Exit Condition: 10% profit target or 21-day max holding period. Stop Loss: 8% hard stop.