Nvidia dips to pre-AI boom prices while competitors get multi-billion deals — ba
Thesis
Reports indicate Nvidia's next-generation AI server rack system has been delayed by over a year due to manufacturing difficulties, which has contributed heavily to a $1 trillion slide in the company's market value. This massive sell-off has pushed Nvidia's price-to-earnings valuation back to levels not seen since before the AI craze began. However, looking at Apple's newly announced $30 billion deal with Broadcom, it is clear that Big Tech is still spending aggressively on AI infrastructure; the demand hasn't disappeared, Nvidia is just facing temporary production bottlenecks. Because Nvidia remains the dominant player in AI data centers and is now priced like a value stock, this panic-driven dip offers a contrarian entry point.
Strategy approach
Build a mean-reversion strategy that enters long NVDA on D1 when the stock price touches or crosses below the lower Bollinger Band (20, 2). Confirm entry with a rising 14-day RSI divergence. Exit when price touches the 50-day moving average or after a 30-day hold, with a 7% stop loss.