The rebound in Nvidia alongside Micron’s earnings beat reinforces a key point. The AI-led semiconductor cycle remains fundamentally intact rather than episodic.

Morgan Stanley’s conviction is grounded in structure, not sentiment. AI compute demand is broadening from training into inference, enterprise deployment, sovereign AI and edge workloads. This sustains multi-year visibility for leaders such as Broadcom and Astera Labs, alongside Nvidia at the system level.

Is this a buy-the-dip for Nvidia?

From a medium-term perspective, yes, selectively. Pullbacks driven by positioning, profit-taking or macro noise do not alter Nvidia’s dominant role in AI accelerators, networking and software. Valuation is elevated, but earnings revision momentum remains supportive.

Tonight’s price action:

A gap-up-and-sell-the-news session is plausible short term, given crowded positioning and recent volatility. However, unless accompanied by negative guidance or a macro shock, dips are more likely to be absorbed rather than extended.

Bottom line:

Tactically, expect two-way volatility. Strategically, the semiconductor upcycle appears unfinished. For investors with patience and risk control, weakness remains an opportunity rather than a warning.