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Nvidia shares drop 26% amid valuation concerns and AI chip risks, seen as a trade opportunity not buy-and-hold.

Market News
10 Nov 2026, 22:03 WIB
Seeking Alpha
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Bearish
Nvidia shares drop 26% amid valuation concerns and AI chip risks, seen as a trade opportunity not buy-and-hold.

Nvidia's stock has fallen about 26% in the past month, underperforming its tech peers due to concerns over valuation and the loss of the 'Jensen premium.' The forward price-to-earnings ratio has compressed to 19.2x, below sector and historical averages, while the PEG ratio is at 0.38x. Analysts see potential short-term gains from earnings improvements but caution against holding long-term because of risks related to AI custom ASIC development extending to mid-2027. The stock is recommended more as a trading opportunity than a buy-and-hold investment at this time.

Nvidia's stock price on Pluang is USD 168.59 as of Nov 11, 2026 03:21 WIB, showing a 5.64% decline in one day. The stock's 52-week low is USD 165.17, close to the current price, indicating recent weakness. Pluang investors hold Nvidia shares for an average of 118 days, reflecting a medium-term interest in the stock.

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