$NVIDIA(NVDA)$ Consider that investors are about to be presented with compelling dip buying opportunities. We've seen investors continue to rotate out of blue-chip names, selling down on Nvidia, which has pushed it into correction territory, down 13% from its high. But each time $NVIDIA(NVDA)$ has been in a correction or even bear market (down 20%) it always recovered and then hit new record highs. This will be the fourth time this year Nvidia has seen a big pull back. In March it fell 20% and then hit new record high. In June it fell 33% and then later hit a new record. Nvidia's recovery will probably happen again as its results highlighted showed companies like Microsoft, Meta, Amazon are not slowing down on their orders of Nvidia's GPUs.
Add Nvidia at $90 or Time to Liquidate Position Now?
The semiconductor cycle typically lasts 3-5 years, and since 2008, the global semiconductor market has gone through four complete cycles. The current cycle bottomed in Q1 2023.
Some argue that this semiconductor cycle has already ended. While NVIDIA’s PE ratio is relatively low, the impact of Blackwell may lead to lower gross margins, potentially causing its PE to rise next year.
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How do you view this semiconductor cycle?
If NVIDIA drops below $100, would you add to your position?
Or would you wait for the next semiconductor cycle to restart before investing?
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Comments
Can buy ?