So NVIDIA hit $170 and everyone’s asking the million-dollar question: buy the dip or run for the hills? Let me break this down for you without the Wall Street jargon.
Here’s the deal: NVIDIA just had what I like to call a “good but not great” earnings report. Think of it like getting an A- when everyone expected an A+. Revenue jumped 56% to $46.7 billion (which, let’s be honest, is still pretty ridiculous), and they beat estimates for the ninth straight quarter. But here’s where it gets spicy – this was their slowest growth in that streak.
The market threw a mini tantrum because data center revenue missed forecasts for the second time running. Plus, their Compute segment actually declined quarter-over-quarter for the first time in forever. Cue the dramatic music and hand-wringing.
But before you panic-sell your shares, let’s zoom out. NVIDIA is basically the cool kid who’s been dominating the AI playground, and even with China trade restrictions cramping their style, they’re still growing like crazy. You’re paying about 38 times forward earnings right now – which sounds scary until you remember this is the company powering the AI revolution.
Here’s where it gets interesting (and slightly nerdy): September is historically NVIDIA’s third-worst month. It’s like the stock has seasonal depression or something. And for the first time since February, NVIDIA broke below its 50-day moving average – which in trader speak means “uh oh, the trend might be changing.”
So what’s the play? If you’re thinking long-term (like, actually long-term, not “I’ll hold for three weeks” long-term), NVIDIA is still the AI kingpin. The fundamentals are solid, even if the growth is maturing from “absolutely bonkers” to just “really impressive.”
But if you’re looking at the short term, I’d pump the brakes. That 50-day moving average could turn into resistance faster than you can say “ChatGPT,” and if it does, we might see NVIDIA slide down to $150. And honestly? That would be a beautiful buying opportunity.
The bottom line: NVIDIA isn’t broken, it’s just not invincible. The AI story is far from over, but the stock might need a breather. If you’re already holding, maybe don’t add more right now. If you’re looking to get in, patience might pay off with a better entry point.
Remember, even the best stocks don’t go straight up forever. Sometimes they need to take a nap before the next leg higher. NVIDIA might just be catching some Z’s at $170.