Nvidia is now cheaper than semis as a whole. How to trade it at these levels

Nvidia's recent pullback with the broader semiconductor complex has reset the stock to one of its most important technical and valuation zones. The decline has also lifted options premiums, creating a more attractive setup for selling defined-risk downside volatility rather than chasing the stock near its highs. Additionally, fundamentals have continued to improve with fiscal first-quarter revenue up 85% year over year, while Data Center revenue surged 92%. Management guided the following quarter with non-GAAP gross margins near 75%, indicating that AI infrastructure demand remains exceptionally strong. Against that backdrop, the selloff looks more like a valuation reset than a breakdown in the earnings story. Nvidia now trades well below the semiconductor industry average despite delivering superior revenue growth, EPS growth, and profitability. If $200 holds as support, the combination of attractive valuation and elevated implied volatility creates a compelling opportunity to collect premium through a defined-risk put spread. Trade timing & outlook NVDA has pulled back toward the $200 support level, where buyers previously defended the stock during its recent breakout. Major support test: The $200 area represents both a psychological level and a prior breakout zone, creating a technical floor for the trade. Upside recovery: If $200 holds and semiconductor sentiment stabilizes, NVDA could begin rebuilding toward the $225 resistance area. …