How DeepSeek News Crushed NVDA—and Why It Could Be A Buy Opportunity!!🙌🤑
NVIDIA’s Biggest Single-Day Crash!! What It Means for Traders & Investors & How To Play The Trade!!📉😱
Good Morning, MFG!!🤘
YES! YES! YES!👏
Monday, January 27, 2025, will go down as one of the most remarkable days in stock market history.👈✍️
NVIDIA Corp. NVDA 0.00%↑ , one of the top-performing stocks of 2024 and a leader in the AI revolution, suffered its worst single-day loss ever, with the stock tanking nearly 17%!!📉🚨
This historic decline erased approximately $589 billion from NVDA’s market cap, marking the largest single-day loss in U.S. stock market history.‼️😱
The sell-off was sparked by news from Chinese AI startup DeepSeek, which unveiled a groundbreaking AI model on January 20th that raised concerns about the competitive marketplace in artificial intelligence (AI).🤖😨
The new model, viewed as a potential threat to OpenAI, was developed at a fraction of the cost of traditional AI projects. While OpenAI’s GPT-4 model reportedly cost over $100 million to train, DeepSeek’s latest innovation was completed for just $5.6 million.🙆♂️🙆♀️
Prominent American venture capitalist Marc Andreessen called the model “one of the most amazing and impressive breakthroughs I’ve ever seen,” fueling fears that future AI models could require fewer chips and less energy than today’s technology.😧🙀
These concerns directly impact NVDA, whose dominance stems from the skyrocketing demand for its high-performance chips used to train and deploy AI models.😦😶
This announcement triggered a wave of panic across the tech sector, causing a broad sell-off in semiconductor stocks.🤯🌊
While the drop in NVDA’s stock is shocking, it’s worth considering whether this news truly justifies the historic level of hysteria it has caused.🤔🧐
One of The Worst Days For One of The Best Performing Stocks of 2024‼️🚨
As one of the standout performers of 2024, NVDA has been the poster child of the AI boom, delivering exceptional growth and cementing itself as a leader in the industry.🙌💪
For such a top-tier stock to have its worst day in market history is an undeniable milestone—one that will be remembered for years to come.🧑💻👩💻
As an astute trader and investor, you must investigate the situation and maintain an objective perspective during times like this.🕵️🕵️♀️
This could be the start of a deeper Stage 4 decline in NVDA, or it could simply be an overreaction to speculative concerns about AI’s future.🤷🤔
No one—myself included—can say for certain what comes next.👈‼️
Warren Buffett’s timeless advice feels especially relevant here: “Be fearful when others are greedy and greedy when others are fearful.”🐐🧠
For those who can look past the short-term noise and chaos, this pullback may represent a unique opportunity to invest in NVDA’s long-term potential.💪👑
👉Now let’s take a look at the chart of NVDA.📉🕵️
NVIDIA Corp. (NVDA)
[See NVDA chart below.]
NVIDIA Corp. NVDA 0.00%↑ dropped 17% on yesterday’s big news from Chinese AI startup DeepSeek, almost tagged an extreme-low RSI reading, and blew through its 200-day SMA! Any time a stock falls below its 200-day SMA, it presents an opportunity for traders and investors. This could just be a massive overreaction to the news or the start of a stage 4 decline.
Not only did price fall below its 200-day SMA, it broke its 20-day SMA, the TSI crossed, and the MACD histogram rolled over to the bearish side. All of the Money Flow indicators are pointing down and demonstrating full confluence, which signals a stage 4 decline could be underway. Let’s see what happens throughout the rest of the week!!🧘♂️🧘♀️
According to analyst Brian from Morningstar, NVDA has a fair value of $130 and is currently trading fairly valued.🤓
👉Now let’s dig into G’s 3 ways to play the NVDA trade below.🐐🙌
G’s Three Ways to Play NVIDIA🧙♀️🐼🔮
Behind this historic sell-off lies opportunity for disciplined traders and investors and there are several ways to approach the NVDA trade depending on your strategy.
If you know me, you know I like capital appreciation, leverage, profits, and dividends.📈💰💧