$NVIDIA(NVDA)$ Nvidia’s drop below $100 in pre-market trading reflects broader market concerns, likely tied to the U.S.-China trade tensions mentioned in the post. Analysts warning against buying U.S. stocks too early suggest that further volatility may be ahead, especially with tariffs impacting Nvidia’s supply chain and sales in China. However, Nvidia remains a leader in AI and semiconductor markets, with strong long-term growth potential.
Short-Term Strategy (1-3 Months): I’d lean toward waiting for a potential dip to $90. The $90 level could act as a psychological support, and with market uncertainty, there’s a chance for further downside. If you’re a risk-tolerant investor, you could start a small position now (e.g., 25% of your intended allocation) and add more if it drops to $90, using dollar-cost averaging to reduce risk.
Key Risks: Continued trade tensions could push the stock lower, and a broader market sell-off might exacerbate the decline. Monitor U.S.-China trade developments and Nvidia’s next earnings for signs of recovery.
Upside Potential: If trade tensions ease or Nvidia reports strong earnings, the stock could rebound quickly, potentially reaching $110-$120 in the near term, given its historical resilience.
Recommendation: Wait for $90 to maximize your entry point, but be ready to act if positive catalysts emerge sooner.
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