To The Moon

Nvidia's current trading price of $107.72 with a PE ratio of 36.66 might suggest it could be undervalued, especially if it's reached a bottom in its price action. A PE ratio of 36.66 is relatively high compared to the broader market, but if the stock has experienced a significant price drop recently, it could be a sign that it’s undervalued, particularly if investors are expecting future growth in Nvidia’s core businesses like GPUs, AI, or data centers.

U.S. stocks continue to plunge, with the Nasdaq dropping over 3.5%, hitting a nearly six-month low.

After opening lower today, the U.S. stock market continued to slide. The Nasdaq, a key index, dropped to its lowest point since mid-September of last year, extending its previous large head-and-shoulders pattern. This wave of decline is reminiscent of the sharp drop in August of last year. From the historical high of 20204, the current drop is approximately 13%.

This decline is primarily driven by the economic correction's impact. Falling back to the low point seen during last September's interest rate cuts suggests that if the rally was fueled by liquidity, it has now been reversed.

The next step is to observe whether the economy truly turns downward, which will determine how far the correction may go. Particularly if inflation rises further, it could tie the Federal Reserve’s hands, explaining why there hasn’t yet been a surge in stock prices despite weak data. 

$Cboe Volatility Index(VIX)$ $NASDAQ(.IXIC)$ $NVIDIA Corp(NVDA)$ 

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