Nvidia Stock Rout To End Soon Says Fundstrat Analyst, Crypto Market Recovery Ahead?
On Friday, the Nvidia stock rout extended with the NVDA price crashing more than 4% all the way to $102.83. Over the past week, the NVDA share price has corrected by 14% sending the entire US tech industry into a tailspin. Fundstrat analyst Tom Lee believes that this could be the right time to buy the Nvidia share after this drawdown. The crypto market has largely reacted to the tech market correction with Bitcoin and Altcoins entering strong correction yesterday.
Nvidia Stock Sell-off Presents Buying Opportunity
Appearing during CNBC’s Closing Bell hours on Friday, Fundstrat analyst Tom Lee stated that the Nvidia stock rout could be ending very soon. The CNBC host stated that Nvidia valuations have skyrocketed over the past year and more, and there’s too much “priced in” this stock.
Responding to this, Tom Lee said that in the 10-year history of Nvidia, the NVDA share has seen 30% drawdowns nearly eight times. He said that the Nvidia stock PE was actually higher after the previous drawdowns and this time, it’s comfortably around the mid-20s. Lee views this as just a normal profit booking adding that it might take the share price down to the 90s, however, this is a good buying opportunity with a four-year horizon.
Are these sell-offs in Nvidia a buying opportunity? @Fundstrat‘s Tom Lee makes the case $NVDA pic.twitter.com/dVykj0g5ub
— CNBC’s Closing Bell (@CNBCClosingBell) September 6, 2024
Tom Lee is not alone in setting the bull case scenario for the chipmaker. Bank of America has also shared the Nvidia stock target of $165 which could also stage a strong recovery in several AI coins and the broader crypto market.
Over the last week, the chipmaker saw $406 billion eroded from its market cap with the DOJ initiating an anti-trust probe. However, Nvidia debunked the DOJ’s subpoena adding that they would be ready to work with the regulator in the case of future queries.
Bitcoin Shows Resilience Amid NVDA Share Rout
In the last 30 days, the Nvidia stock has seen wild swings between $90 to $130. This has been the worst two-week stretch in the last two years for the NVDA share. This volatility in the share price has made the Bitcoin price volatility look smaller.
Of course, the Bitcoin price has been reacting to NVDA share swings, down 9% on the weekly charts, with analysts predicting the BTC price drop to $49,000. Several AI coins have also dropped 15% on the weekly chart in tune with the NVDA share drop.
Thus, a recovery in Nvidia could also trigger a similar bounceback in Bitcoin and the broader crypto market. It will be interesting to see whether there’s more pain left in September before a strong recovery. As shown by Rekt Capital, the Bitcoin price has already corrected more than the average September month corrections in the halving year.
Bitcoin is currently in a Halving year
So it makes most sense to compare 2024 with previous Halving years
2016:
+6% September upside followed by +14% October upside
2020:
-7.5% September downside followed by +27.7% October upside
2024:
Currently -9% September… pic.twitter.com/PKQogNsiJf
— Rekt Capital (@rektcapital) September 6, 2024
The post Nvidia Stock Rout To End Soon Says Fundstrat Analyst, Crypto Market Recovery Ahead? appeared first on CoinGape.