Nvidia Drops Crashing Market
Nvidia’s fall from grace has been nothing short of epic, with a loss of 20+ points since earnings. Then dropping almost 10% today amongst a sea of red. There is no doubt that the Nvidia bubble has burst and tanked most of the market with it. Earning anticipation was seemingly already priced into $NVDA value. Most tech stocks suffered a similar fate. $GOOG $APPL $COIN $META all showed similar chart movement since $NVDA earnings.
Why?
Historically September seems to be a down month for the market. Warren Buffett has been selling like crazy, dumping a good amount of his darling $BAC (Warren Buffet Sell Off Bank of America) and $AAPL (Apple). He is currently sitting on almost 200 billion in cash. Some feel he knows something we don’t, but maybe he is just restructuring Berkshire’s Holdings. A Poor manufacturing data report (TradingEconomics.com), probably accelerated the drop. An anti-trust lawsuit vs. Nvidia over it’s dominant AI position was also announced. DOJ Anti-Trust Subpoena – LA TIMES
Don’t forget Nvidia’s CEO, Jensen Huang, selling almost 14 million worth of stock daily. During earnings a buy back was announced, odds are the CEO knew about these plans months in advance. I’m sure $NVDA and Jensen will buy back in at its lowest and enjoy another rally courtesy of all the bag holders who bought above them.
SEC
If I were a company like Google or Apple, whose stock is almost mirroring Nvidia’s decent, I would be quite annoyed by circumstances behinds its tumble. The downfall seems to have been accelerated by the CEO and the company itself to conveniently buy back shares at a lower price. I’m not sure of the laws behind all this stuff but it certainly shouldn’t be legal. They will make out like bandits while others lost their life savings or even worse their lives to suicide from the sudden financial burden. Lucky for me it was only a cheap $100 moonshot option. Suicide Prevention Hotline USA
The Future
It’s quite difficult to tell where the bottom is but there is certainly strong support around 90$ a share. It probably won’t reach that low as it will be bought up by others trying to get in at low prices or people who are buying back in after selling around earnings or after. Possibly $95 a share, but to be honest anywhere under 120 is a steal for a long term investment. If you bought in already just hold for a bit and it should rebound past your cost. Nvidia is still the market leader for AI computing technology and this will continue for years to come. Once it’s Blackwell series starts to roll out things will turn around quickly.
Nvidia $NVDA Stock Chart Trading View
Observations
Virtually the whole market is moved by Nvidia. However some stocks have been performed extremely well since the slide started. Those are $KO (Coke Syrups) (Owned by Buffett, $VZ (Verizon), and $MO (Phillip Morris). REIT‘s and Healthcare Sector Stocks were also minimally effected by Nvidia’s drop. $BRK.A (Berkshire Hathaway) has been moving well too, probably because of all the cash Buffett is sitting on and his knowledge of the markets. What do most of these have in common? They have dividends which are often considered a safe haven during a turbulent market.
DON’T forget CRYPTOCURRENCY, BITCOIN $BTC, $MSTR, and BTC ETF‘s and Crypto Mining Stocks. They will enjoy a NICE Pump when it reaches ALL TIME HIGHS! HOWEVER THEY MAY GO a LITTLE LOWER!
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