The case for NVDA to have a big big correction may be related to the bleed in the value of cryptocurrencies.
Cryptos go up, people buy GPUs to mine them. Simple as that. Granted Ethereum is the biggest of the GPU-mineable cryptos.
So cryptos go down, and stay down, and no one is buying GPUs.
In addition there become a surplus of high quality used GPUs available at lower and lower prices as people just want to get rid of their collection of useless mining equipment. These people are, after all, going for the quick buck and not likely to have much of a sense of foresight or dedication to something that is not providing a quick buck.
This could compound to being a huge hit to NVDA stock. Each mining rig may have 8+ high end graphic cards. Many people have multiple rigs. That is a huge quantity of high end graphics cards that may be flooding the market soon should cryptos keep heading lower and remain lower.
NVDA lovers will say no, it's not about cryptos it's about AI.
It's not about AI guys, seriously, but keep believing it as the price of $NVDA keeps going down.
Legal Disclaimer:
This is my opinion only.
This is for entertainment purposes only.
This is NOT financial advice nor a recommendation to buy or sell anything.
