Bought NVIDIA at a PER of 12x… An investment strategy combining semiconductor short selling

Tech investor Dan Niles began buying Nvidia shares on November 10, citing a price-to-earnings ratio of roughly 12x as evidence that significant bad news is already priced in. Niles pairs the long position with short sales of other semiconductor stocks to manage risk-adjusted returns, rather than making a standalone bullish bet on the chipmaker. He noted Nvidia has fallen this year and underperformed the Philadelphia Semiconductor Index (SOX) in the prior year as well. The strategy matters because it signals that valuation-focused investors see Nvidia's derating as a potential entry point while hedging broad semiconductor exposure. What to watch next is whether Nvidia's multiple stays near 12x and how the paired shorts against other chip names perform relative to the SOX.