This happens every damn time. The stock drops more than 10-20%, everyone loses their mind, people panic and call for absurdly low price targets like 70-80, and then it shoots back up.
And every single time these predictions and targets pop up, they are said with the utmost confidence only for them to be wrong.
It’s remarkable how people can’t follow the simple adage of buying during fear and selling during greed. This entire sub is panicking and frothing over how much the stock dropped and you’re now…selling? after the drop? A drop which was precipitated by a baseless article regarding a DOJ subpoena? No wonder you’re losing your grandma’s money.
People overreacting to NVDA’s drop are about to learn a hard lesson
byu/mollylovelyxx inwallstreetbets
Posted by mollylovelyxx
46 Comments
Anxious for NFP today  Pre already red 
“But this time is different!”. *inner workings of a coping 🌈🐻*
I understand concrete value of an apple. I dont understand concrete value of NVIDIA.
Yeah bro, I’m bagholding shares too 
Nice speculation, I work in AI and I believe that this GenAI hype will die out very soon, question is how much of NVIDIAs stock price will follow. They do build great GPUs both for gaming and compute, but what happens when something that is built on hype (and hype only) dies out? It’s already proven that adding more data to LLM does not make it a lot better, so there has to be a silver bullet somewhere to take it to the “next level”. There’s a big gap between “useful” and “taking over the world”. I see a lot of niche products being built around it that actually work (transcribing, SEO, image captioning, etc) which is great but does it really justify the current valuation? Only time can tell.
aBsUrDlY lOw. Dude even at 80 it’s still a 2t+ stock that’s counting on ever growing AI sales
But the dividends guys! The dividends!!
Does major FED policy change happen every time? You learned nothing from FED November 2021 Tapering event I see. SHOP will help you learn. Some article has nothing to do with what comes next.
I’m holding what I’ve got and I just bought some more because I also think it’s about to climb. Here’s hoping we are right.
Nvidia bears have been saying the same thing since I joined WSB. It has dropped 30 to 50% at least three times and gone through 2 stock splits since then and is still up 10x. In 2021 people attributed its growth only to the Crypto bubble which has also since recovered, and now they are shouting doom and calling AI a bubble and saying it will go back sub-50. If you are a Nvidia bull just go on living your life and ignore the bears. They could be right, who knows, but if they are it isnt retail that will be losing 2 trillion in wealth.
IMO, you’re overreacting to others overeacting.
Just to clarify, the stock dropped to 108 level before the article was released.
It only dropped about 1% to 105 when the article was released. So, really, the article did not precipitate anything. Price just cycled through 105 and 109 for two days, and currently, it looks like it’s slated to take a ride to the next level down. Probably will stop and hover around the 100-102 level. But that’s just price mechanics in play.
Furthermore, the pricing of 70 and 80 isn’t really absurd as it’s the equivalent of 700 and 800 pre-stock split. Don’t forget stock splits itself add no value to the shares. It just makes it easier to trade.
Previous earnings placed the value of the shares between 940-1000. The run up to 1400 was due mostly to anticipation of the stock split. As for post earnings, yes they beat earnings
Believe it or not, stocks move in waves.
I’m thinking 115ish then dump and I would say 80-85 is likely
I agree with you OP. It’s easy to get caught in the hype of the day. If only some people would walk away from their screens for a few minutes to realize the sky isn’t falling, we’d a;l be better off. Either that or take a more scientific approach and do the opposite of Kramer, we all win.
Bag holding NDVL at the top. I’ve effectively turned 23k into like 15. It’s tight. I’ll be charging 100 a hour for stock advice behind the Wendy’s dumpster down the street.
Absurdly low 70-80? You do realize it was literally in that range 4 months ago?
DGAF 😂
But my money is tied in other options so need theta to do it’s job
“buy low sell high” mfs when they see red 3 days in a row and bail like the company is going under 🤡
Overreacting? I don’t believe anyone thinks it’s going to zero, but unexpectedly tying up funds for 4 to 8 months IS a factor. I mean I do believe it will hit the 130’s between now and then, or shortly thereafter. That’s why I substantially reduced my position with some sells and buybacks on the way down. I pulled 65% of my cash out, and adjusted things to where 133 is my break even point now. Why? Because leaving that amount tied up for that long isn’t so bad. We’ll see where things are at the break even point, but you have to realize that the continued existence of Taiwan is heavily tied to the US’s next election. Semiconductor stocks could either keep going, or slam through the basement. I don’t want that level of long term exposure. Certainly not with a stock that tanked on positive earnings.
Keep in mind I’m not referring to the company. Just the stock. If I thought for even half a second that the near term future of this stock were connected to company performance, I would have doubled down as opposed to scaling back 2/3.
shares gang
And the opposite is also true. When it shoots up to 130, people are saying it will hit 140-150 in a week. This is why so many people fail at trading, the majority can’t escape from buy high, sell low.
every month this will happen, and go lower and lower
some people bought at $140
Just give me some 90-98 to throw my profit back in then I wait till October.
yea have all in the 1DTE nvda put. wish me luck
12 months from now people are gonna complain why the stock trading at said levels when insiders are making the best returns and employees with their vested securities are realizing it and go on early retirement 😄
I invested in NVDA and AMD years ago because of exposure to NVIDIA’s role in AI through work. There are no other ways to easily invest in AI (yet), because the businesses haven’t scaled to enough magnitude to be public market viable. I saw and still see AI as inevitable and the ultimate technological “space race” of this century.
When NVDA first jumped multiples earlier this year, I thought it was a bubble then because of the valuation spike and because genAI was way overhyped by the general public and tech illiterate finance types. I thought it would peter out quickly and everyone would be down on it without genAI making much impact. For better or worse, I was wrong and now the momentum is too strong. Too many investments have been made and general awareness has permeated even the most tech ignorant boomers. ChatGPT was a strategic release to hyperscale awareness and accelerate adoption of AI by the general public and non tech businesspeople, but it was already inevitable before that ever got publicized. It still is inevitable.
I see drop below 100. Memaw said btfd and I did….
I mean nvidia does have a monopoly
Your NVIDIA calls are down, aren’t they?
NVDA has a history of dropping 60-70% off its high when the down turn starts. This is due to their dynamic pricing. In good times, they sell more units at higher prices, which compounds growth. As demand lets up, so does pricing, and they sell less units at a lower price. We saw it in 2018-19, again in 2021-22 and about 4 times the previous 15 years. Looks like we are right on schedule for the next big one
Good points. Though not every dip is a buying opportunity, gotta review the underlying reasons and the company’s fundamentals before committing to buying the dip
Zoom out, add More. Make bank . Long term i the plan
So what you’re saying is you’re a bag holder, nvda is a leader in its field and you didn’t sell after the stock split. Imagine not selling after seeing the CEO sign some woman’s shirt just because nvidia’s share price was jacked to the gills at that time
Time in the market always beats timing the market.
Put it is
When do your calls expire?
I bought last dip for 98 and still happy. Wtf is the problem?
People said the same about CSCO in 2000.
Shhhhhhhhhhhhhhhhh
Reddit is simply stupid. Let them sell low and I will buy.
Typically I’d say you are correct but there are certain times in the economy and markets where buying the dip is just not a good strategy. People right now are trying to figure that out and I don’t think they’re crazy for wondering or being indecisive. Are we repeating 2008? Because if we’re not it’s due. I love to buy fear but even right now I’m sitting on my hands for September
It’s already like this until it isn’t and it keeps going. Set fucking stops and protect your gains. Much easier to buy in lower that way
Regards sell low and buy high, why? Because they let greed override fear at the wrong time.
NVDA is the greatest meme stock in history. Billionaires ponzy scheme.
yeah, yeah, I have been buying these dips for weeks, not only NVDA, but all shitz still red. I am sure, I will sell it soon before FED will cut rates or some shit and the whole market will moon. Buy high, sell low team!
How is $70-$80 absurdly low? It’s at $107, that’s completely in the realm of possibility and not absurd at all.
70-80 is not absurd for a hardware company