3 Reasons to Wait for this One Price to Buy NVIDIA’s Dip

Here we go again, that’s the feeling that a lot of NVIDIA (NVDA) investors and “would-be” investors are thinking.

Last week’s earnings surprise – yes, the company beat expectations and raised their guidance again - has failed to spark another one-month 50% rally like we saw in June, but the reasons are simple.

Click here to watch my latest video breakdown on NVIDIA's "buy the Dip" opportunity.

Here are the Three Reasons to Hold Off on Buying NVIDIA for a Few Weeks

1. NVIDIA Was Over Loved and Was Priced for Perfection Ahead of Earnings:

This is a term that I was using for the month running up to the company’s earnings call last Wednesday.  Put simply, everyone owns it and EVERYONE’s expectations were that the company would crush their earnings results.  Guess what, when the expectations are that high it’s impossible for a company to impress investors enough to get the stock moving higher.

2. September Seasonality

You’ve probably heard about how the market’s seasonality is bad for September, well NVIDIA’s Seasonality is worse!

Over the last 25 years NVIDIA’s average performance for the month of September is bad at -2.3%.

I know what you’re going to say… “NVIDIA isn’t the same company that it was 25 years ago”.  The average September performance for NVIDIA over the last five years is -6.8%.  Performance for the last three Septembers… -13%!

Even NVIDIA’s AI muscle can’t overcome the September swoon.

3. The Department of Justice’s Antitrust Subpoena

Talk about bad timing.  NVIDIA reportedly received subpoenas from the Department of Justice regarding the ongoing AI antitrust probe.

News hit yesterday, just as the stock broke below some key technical support and it means that we’re going to see even more selling over the next few weeks.

Subpoenas have been flying around the large cap technology companies like credit card offers in the main, so the market is used to dealing with the news.  That said, analysts are going to start talking a little more about the stock getting back to more “normal” valuations and that means selling.

With All That’s Going on, There’s Still a Good Buy the Dip Opportunity Coming

NVIDIA’s long-term outlook remains bullish, which means that there’s an opportunity coming to get the stock at a discount that you don’t want to miss.

I’ve got the prices to watch as well as the a “Buy the Dip” target covered in my latest YouTube video.