[TOPIC] NVDA Fell 10% In A Day; Buy The Dip or Short Semiconductor?
The protagonist of the bumpy trend last night is $NVIDIA Corp(NVDA)$ because of 2 pieces of news.
It might be oversold or just opened the channel for more declines ahead. The news has no doubt that makes another hit on the already poor semiconductor sector.
Another Hit on Semiconductor
1. On Wednesday, Nvidia said in an SEC filing that the US government controls sales of high-performance AI chips for servers, the A100 and H100, to China and Russia. The export control might lead to $ 400mln losses in 3Q.
2. On Thursday, $NVIDIA Corp(NVDA)$ said the US government will allow it to continue developing its H100 artificial intelligence chip in China.
After the news, $NVIDIA Corp(NVDA)$ once fell to $132.70 (share price dropped over 10% in one day), and closed at $139.37.
Buy the Dip or Short Semiconductor?
$NVIDIA Corp(NVDA)$ unexpectedly fell below the low point in June. It might be a good opportunity for bottom fishing.
According to the top buy/sell list, NVDA ranked first with 70% of investors buying NVDA at its low point.
In addition to buying the shares, we can also consider sell put of NVDA and earn the premium.
But we should note that semiconductor is in its down cycle. It may take 1/2 quarters to fully recover.
Analyst from Citigroup said that,
The semiconductor industry is entering its worst downturn in 10 years, predicting that the chip sector could fall another 25%.
Will you buy the dip or short semiconductor?
What’s your trading strategy to deal with this plunge?
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I dont think they can lost such a huge market, so they will make some arrangements [开心][开心]
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