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Nvidia bottoming out?

Nvidia has been on a downtrend for 9 whole months with from a high of 18.55 to the current price of 9.87, representing a whooping 50% discount! However at the 24 PE, it would seems rather expensive. If the earnings improve next quarter, it would be a different story.

Technical wise, it is still on a downtrend. But I believe a sideway trend might be  forming as it is not within the influence of downtrend line with bullish divergence seen on various indicators.

Jim Cramer has also been advocating a buy for this counter due to the discount from the recent high. Nvidia definitely needs to improve its earnings. The semi-conductor industry seems to be bottoming. Texas Instrument performing better than Intel which really surprises me.

The issue with buying tech stock is the risk of being outplayed by destructive and innovative companies. The cost is high due to R&D expenditures to improve their leadership. Will the company able to come out with better products and yet improving their bottom line is the ultimate question.

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