The main pro of course is the tax loss pick up, and reducing exposure (if that is a goal) to a volatile stock. The main con is the uncertain ability to buy it back well, especially with earnings due in 16 days, too short of a period to offset the superficial loss 30 day rule. NVDA is widely expected to beat estimates as usual, but the stock reaction is really tough to call. A miss or lowered guidance of course would be ugly. If one is in a 50% tax bracket, the tax benefit of a loss can be 25% to 33% if offsetting capital gains elsewhere (depending on total gains now if above $250k). Could the stock move that much? Sure, but probably not likely considering the size of the company. The average move on earnings over the past decade has been (absolute) +/- 7.24%, ranging from +38% to minus 14%. With exposure already, we would be OK with a tax loss strategy here if one understands the risks.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in NVDA.