Chip Stocks Just Had Their Longest Losing Streak Since 2008. Should You Buy Nvidia Stock Now?

The PHLX Semiconductor Index experienced its longest losing streak since 2008, dropping 16% over eight trading sessions through October 16. Nvidia stock fell about 10% during this period amid concerns over interest rates, AI financing, and competition. However, the article suggests focusing on fundamentals rather than charts: Nvidia's revenue surged 106% year-over-year to $96.2 billion in Q2, with guidance for Q3 revenue around $108 billion. Historical analysis shows that similar streaks preceded both significant gains (four cases) and losses (two cases), making timing difficult. The author recommends considering Nvidia's strong growth and reasonable valuation (14x fiscal 2028 earnings) but suggests buying in stages over several months rather than all at once.