Just months ago, NVDA was the undisputed darling of Wall Street, riding the AI wave to dizzying heights. Fast forward to now, and the stock is down over 50% from its peak. Investors are rattled, analysts are split, and the retail crowd is torn between "back up the truck" and "wait for more blood."
So what now? Is this a golden buying opportunity or a dangerous value trap?
From AI Hype to AI Hangover?
Let’s be honest — Nvidia’s meteoric rise was driven by massive expectations, not just performance. The company delivered strong earnings, yes. But it was the narrative — that Nvidia would be the foundation of the entire AI future — that really pushed the stock into the stratosphere.
Now, that narrative is cracking:
Slowing GPU demand from hyperscalers and data centers
Softening enterprise AI budgets
Rising competition from AMD, Intel, and even custom in-house chips from tech giants
Macroeconomic headwinds making capital expenditures harder to justify
Nvidia isn’t suddenly a bad company — but the story that carried it to the moon is being challenged. And that means gravity is setting in.
Valuation Still Not Cheap?
Even after falling below $100, Nvidia isn’t exactly a bargain basement value stock. Its P/E ratio is still lofty compared to historical norms. Forward guidance looks vulnerable, especially if AI adoption slows or gets pushed further out on the timeline.
Some investors argue that it’s better to wait for a deeper pullback — say $90 or even $80 — before jumping back in. After all, if this is truly a macro-driven correction, we may not have seen the bottom yet.
But What If This Is the Bottom?
Of course, trying to time the bottom perfectly is risky.
Every bear market is littered with missed chances — moments when stocks looked scary but were actually screaming buys in hindsight. Nvidia still dominates the AI chip space, and any positive news (a big government AI push, new GPU cycle, or an AI-powered earnings beat) could cause a sharp rebound.
For long-term investors, buying below $100 may be a gift, even if the short term remains choppy.
Final Take
If you're waiting for Nvidia to hit $90, you're not alone. But you're also walking a fine line. The stock has already corrected sharply, sentiment is shaken, and any surprise upside catalyst could send it ripping higher before you have time to react.
On the other hand, if macro weakness deepens or the AI story cools further, $90 might just be the next stop.
Your move:
Aggressive? Start nibbling under $100 and DCA down.
Cautious? Set your trigger at $90 and wait.
Bearish? Step aside and let the dust settle first.
Whatever your play — the one thing that’s clear is this: Nvidia is no longer untouchable. And that makes it interesting again.
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