Nvidia crashes $1 trillion but traders are buying the dip — contrarian play on t
Thesis
After a $1 trillion slide, Nvidia's valuation has fallen back to pre-AI boom levels, even as the company continues to set revenue records. A recent report highlights that while the broader chip sector sells off on Iran fears, active traders are already betting big on an Nvidia rally. The combination of extreme fear from the Iran conflict driving indiscriminate selling and a record-cheap entry point for a market leader creates an opportunity to buy into a dominant company while everyone else panics.
Strategy approach
Build a mean-reversion long strategy on NVDA using daily candles. Entry: buy when NVDA's 14-period RSI on D1 falls below 35 and the stock is within 3% of its 120-day low. Exit: sell when RSI crosses back above 60, or after a maximum 20-day hold. Use a 7% stop loss.