The semiconductor industry is inherently cyclical, with each full cycle typically lasting 3 to 5 years. Since 2008, the global semiconductor market has gone through four complete cycles, each marked by booms driven by technological innovation and busts caused by oversupply or global economic slowdowns. The current cycle, by most estimates, bottomed out in Q1 2023. With AI hype, GPU demand, and data center expansion, NVIDIA (NVDA) quickly became one of the top beneficiaries of this cycle’s upswing. But now the narrative is shifting again—is it too late to buy? Or is it time to cash out while ahead? The Bull Case: Why Some Think It’s a Bargain? To be fair, there are reasons some investors might still consider NVDA attractive—even at current levels: AI Demand is Real: NVIDIA’s GPUs are still
PE at a Historic Low! Would You Bottom Nvidia at $80?
Nvidia was down 33% from its high of $153.13. However, the last time Nvidia peaked at $346 (pre-split) in 2021, it declined 68% to $108 before bottoming out. Its PE and Forward PE both dip to a record low of 30 and 20. Now, with voices emerging that the semiconductor bull run is over, is the current correction far from enough? Its historic low of forward pe is 18 in 2025. If Nvidia further falls to $83, its forward pe will surpass the level in 2015. Would you bottom Nvidia at $80 or DCA now as it at a historic low level?
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