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

Nvidia (NVDA) fell about 10% during the semiconductor sector's worst skid in nearly two decades. The PHLX Semiconductor Index dropped 16% over eight straight sessions through October 16, its longest losing streak since 2008. Pressure came from concerns over interest rates, AI financing, and competition.

The Motley Fool argues the fundamentals outweigh the chart. NVDA's Q2 revenue jumped 106% year-over-year to $96.2 billion, and Q3 guidance sits near $108 billion. At roughly 14x fiscal 2028 earnings, the author calls the valuation reasonable.

Timing the bottom is a different matter. Historical analysis of similar streaks found four cases that preceded significant gains and two that preceded losses. That split favors the bulls, though the sample is just six instances, and the losses showed that a streak alone does not signal a reversal. Interpretation: the numbers support patience over precision.

The author recommends accumulating shares in stages over several months rather than deploying capital at once, an approach built for a stock whose near-term direction the streak data cannot settle.