Is Nvidia’s biggest buy-the-dip opportunity of the year here?
Things are looking pretty brutal right now. Nvidia has lost $470 billion in market value in just two days, with its stock falling from a high of $243 to $167—a pullback of more than 30%!
The reason is a little bizarre, but it really happened: Jensen Huang has become embroiled in espionage allegations. What markets fear most has never been bad news—it’s uncertainty.
So, is Nvidia a buy-the-dip opportunity?
Let’s take a calm look at the fundamentals. Revenue last quarter was $96.2 billion, more than double year over year. The forecast for this quarter is $108 billion—and that doesn’t even include the Chinese market.
Now let’s look at valuation. When the stock was at its peak, its forward P/E was around 18. Now it’s down to about 12—just one-third of its five-year average of 36, making it the cheapest it’s been in more than a decade. A company whose revenue is still doubling is valued lower than Walmart.
Remember DeepSeek last January?
A Chinese AI model came out of nowhere, and everyone said computing power was no longer valuable. Nvidia plunged 17% in a single day, wiping out $590 billion in market value—the biggest single-day loss in market cap in U.S. stock market history.
And what happened? Six months later, Nvidia hit a new high, with its market cap topping $4 trillion. Those who sold in a panic later bought back in at much higher prices.
More importantly, consider the White House’s attitude. When asked whether Jensen Huang should remain CEO, Trump replied, “I think he should, absolutely.” The president isn’t looking to go after Nvidia.
So Xiaoqin believes this storm will eventually pass. I’m thinking about buying some shares while everyone is panicking. These kinds of overreactions usually take months to recover from, so don’t rush in after buying.
As shown in the chart, the stock is now near its previous low of around $160–$170, which could serve as support. You might consider starting with a first purchase here. The next support level is around $150. If it gets there, I think that would be an even better entry point—but we’ll see whether the market gives us the chance.
There’s still a lot of uncertainty, so don’t rush in—buy in stages. For example, there’s a major test coming next week. Nvidia will report earnings after the market closes on November 17, Eastern Time, and we don’t yet know whether the numbers will be good or bad.
Personally, Xiaoqin is hoping for a big drop, because then I can buy more! Hehe.
So while I’m optimistic about Nvidia over the long term, there’s still plenty of short-term uncertainty. U.S. stocks take time to warm up, so let’s take it slowly~
Things are looking pretty brutal right now. Nvidia has lost $470 billion in market value in just two days, with its stock falling from a high of $243 to $167—a pullback of more than 30%!
The reason is a little bizarre, but it really happened: Jensen Huang has become embroiled in espionage allegations. What markets fear most has never been bad news—it’s uncertainty.
So, is Nvidia a buy-the-dip opportunity?
Let’s take a calm look at the fundamentals. Revenue last quarter was $96.2 billion, more than double year over year. The forecast for this quarter is $108 billion—and that doesn’t even include the Chinese market.
Now let’s look at valuation. When the stock was at its peak, its forward P/E was around 18. Now it’s down to about 12—just one-third of its five-year average of 36, making it the cheapest it’s been in more than a decade. A company whose revenue is still doubling is valued lower than Walmart.
Remember DeepSeek last January?
A Chinese AI model came out of nowhere, and everyone said computing power was no longer valuable. Nvidia plunged 17% in a single day, wiping out $590 billion in market value—the biggest single-day loss in market cap in U.S. stock market history.
And what happened? Six months later, Nvidia hit a new high, with its market cap topping $4 trillion. Those who sold in a panic later bought back in at much higher prices.
More importantly, consider the White House’s attitude. When asked whether Jensen Huang should remain CEO, Trump replied, “I think he should, absolutely.” The president isn’t looking to go after Nvidia.
So Xiaoqin believes this storm will eventually pass. I’m thinking about buying some shares while everyone is panicking. These kinds of overreactions usually take months to recover from, so don’t rush in after buying.
As shown in the chart, the stock is now near its previous low of around $160–$170, which could serve as support. You might consider starting with a first purchase here. The next support level is around $150. If it gets there, I think that would be an even better entry point—but we’ll see whether the market gives us the chance.
There’s still a lot of uncertainty, so don’t rush in—buy in stages. For example, there’s a major test coming next week. Nvidia will report earnings after the market closes on November 17, Eastern Time, and we don’t yet know whether the numbers will be good or bad.
Personally, Xiaoqin is hoping for a big drop, because then I can buy more! Hehe.
So while I’m optimistic about Nvidia over the long term, there’s still plenty of short-term uncertainty. U.S. stocks take time to warm up, so let’s take it slowly~
