NVDA bottoming out is viewed as a buying opportunity.

First one here on Nvidia. We talked about Nvidia yesterday. Nvidia isn't so expensive, but the crowded AI trade could unwind quickly and that is the warning of a fund manager.

More doom and gloom. We'll see. Nvidia ticker NVDA. Their stock edged higher in Tuesday's pre-market trading after falling 3.36% yesterday on Monday. The previous session's decline came as leaders at major artificial intelligence companies including anthropic and open AI called for a slower pace of advanced AI development over safety concerns.

The debate raised fears that slower AI development could eventually weigh on demand for chips and data center hardware.

So, first of all, I know that there's some some thoughts back and forth on this whole AI doom scenario and all of that, but I mean, just listening to the earnings reports, it seems to me that even if they slow down a little bit, the demand is not going to be touched at all and they're still going to be able to put up these gaudy

Nvidia shares stabilized on Tuesday despite a weaker, broader market. NASDAQ futures had fallen 61%. S&P futures were down a half a percent. And Nvidia's early gains suggest some investors are buying the dip after Monday's sharp decline.

Let me know from the group. Are you folks buying the dip?

The relative strength is notable because broader futures remain under pressure. However, another weak market session could weigh on high beta technology stocks after the opening bell.

Meanwhile, traders are watching key moving averages as Nvidia tests an important technical zone.

Pelifund CIO Jordan Sevenski told CNBC on Tuesday that Nvidia does not appear particularly expensive when viewed over a one to threeyear time horizon. However, Vetnowski sees a bigger risk in the heavy concentration of investor money across Nvidia semiconductor stocks and the broader AI trade.

He warned that weaker data center demand or a shift in the AI narrative could trigger a rapid unwind across chip and hardware stocks.

The comments add another dimension to Monday's sell-off. And while AI security concerns have raised questions about the pace of model development, investors are also weighing whether massive infrastructure spending can continue at its current levels.

Vetnowski said the key issue is not whether AI requires data centers, but quote how many and how much is enough. End quote. Any slowdown in AI infrastructure spending could have implications for Nvidia because data center demand has become central to its growth story.

If the AI trade weakens, Vetnowski expects some investor money could rotate from chips and hardware into software companies. Nvidia carries a buy consensus rating with an average price forecast of 34822.

Piper Sandler initiated coverage on an overweight rating and a $300 price forecast on September 10th. Rosenblat maintained a buy rating and a $390 forecast on SEPT 4 and NEAM maintains its buy rating and $300 forecast on the same day.

So, we'll see here with Nvidia. Again, I think that this entire kind of fear move, I don't know exactly where Nvidia is going to bottom, but I tend to believe that what wherever it does bottom, this is in fact going to be a buying opportunity.

talking about DA, I I do think there's a chance, you know, Nvidia, there's a trade here today, tomorrow where, you know, it tries to fill this gap. Yeah, that could be a surgical trade where we just came in from 234, the little double top where it broke 220.

Oh, another red dog reversal sell. Anyway, um you know, now you could be long maybe versus 2893. If it gets above 21277, there's four or five bucks if it wants to try and fill the gap or even just see the 50-day.

So that's just something to watch for active surgical cash flow. You can make a dollar or something like that. You know, here it is actually right there, you know, and that could make you a few thousand dollars depending on your share size just for a a day trade without a new high trade, without an alltime high trade, without knowing what AI is going to do that, you know, right there that there's a setup there and it's starting to, you know, get in there as we speak.

Nvidia, I'm seeing some call flow here. Nvidia pulled back. Looks like it's actually trying. It did break the after hours structure. We'll see if it can actually take out this basically at the pre-market resistance from yesterday. We'll see if it can trade above that.

Uh Parker's Thinker Swim Indicators here mentioning Nvidia. Nvidia actually, we talked about this popping here. It actually looks like it's trying to take this out. 214 looks like a pretty interesting uh level here for Nvidia.

And I am seeing continued call sweeps on Nvidia. And by the way, these sweeps are for tomorrow. All right, so these are all short-term sweeps that we're seeing.

Now, we actually already took a look at Nvidia. Nvidia was looking better than it was yesterday.

Uh Nvidia here. Um Joe mentioning that Nvidia is getting smacked down. So a little bit of a reversal here. Nvidia still holding on to green though. I wouldn't make too much of that just yet.

Yeah, the these guys have really running hot. All the semis are running hot today. And that's, you know, that's a reversion trade. it they really have looked terrible for four days and now they're not.

And it's just a wash, rinse, repeat kind of thing.

You know, this one's sitting right on the five and the 20. So, again, this is a this is a good place for a jade lizard, but it's also a pretty nice place since momentum is bullish here.

The dips are going to end up being buy zones. And I do like that area around 400.