Tan kin Lian , a residence of Singapor writes in facebook book about the recent Nvidia price falling :
The price of Nvidia was $20 (USD) in June 2023. Over a period of 18 months, the price went up 7 times to $142 in January 2025. At its highest point, the price earning ratio (PER) exceeded 100 times.
The staggering rise in the stock price was justified by the projection that the profit that the profit would continue to grow exponentially due to the adoption of LLM software that required huge computing power.
When the LLM software from China called Deepseek was introduced last week, the investors realized this new software would be able to carry out the computing with less expensive hardware. The demand for high performance chips, such as that produced by Nvidia, will drop.
The stock price of Nvidia dropped by 17% on 27 January. At the price of $118, it has a PER of 46 times.
I expect the stock price to drop until the PER is 30 times. This imply the possibility of another 35% drop to $77.
If the stock price can drop 17% in 1 night, it could drop another 35% within the next few days.
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