Nvidia Stock Stalls Amid Investor Concerns and AI Market Uncertainty

Nvidia NVDA shares have stalled in July 2026, trading around $195 to $200 and down roughly 17% to 18% from the stock's May 14 high, a pullback that has left Nvidia barely positive for the year while the S&P 500 has gained about 10% over the same stretch. Other chipmakers have moved in the same direction: the broader AI-chip complex has sold off alongside reports that memory supplier SK Hynix is slowing its high-bandwidth-memory expansion, reviving worries about component costs even as the rest of the market, including several megacap tech names, has bounced back.

The stock's underperformance has drawn analyst scrutiny. Citi told clients, after speaking with Nvidia's investor-relations team, that the company's product roadmap remains intact, pushing back on reports that its next-generation Kyber NVL144 rack system, tied to the Rubin Ultra GPU line, could slip more than a year to 2028 over a manufacturing issue with the rack's circuit-board midplane. Nvidia itself has said only that its roadmap is intact, without addressing the delay report directly. Some investors argue that even with the uncertainty, shares are inexpensive relative to Nvidia's growth trajectory, trading near a forward earnings multiple similar to the broader market.

Underlying data-center demand still looks robust in aggregate. Hyperscalers are on pace to spend hundreds of billions of dollars on AI infrastructure and capacity in 2026, and some coverage frames Nvidia as extending its AI lead as that demand accelerates. The open question is how much of that spending keeps flowing to Nvidia's GPUs specifically, given rising competition: Alphabet, Amazon, and Microsoft continue to expand custom AI chips such as TPU, Trainium, and Maia, categories some analysts expect to grow faster than merchant GPU sales this year, while in China, Nvidia's H200 shipments remain stuck in regulatory limbo, a gap competitors including Huawei are reportedly moving to fill. AMD and other chipmakers have traded down through the same stretch as the sector resets.

Nvidia is leaning on other advantages to reassure the market, including its NVLink and Spectrum-X networking technology, which the company argues keeps GPU clusters central to AI buildouts even as custom silicon gains ground. Upcoming earnings from Microsoft and TSMC could offer the next read on hyperscaler capital spending ahead of Nvidia's own results in late August, and how that data lands may determine whether the current pullback proves temporary or extends further.

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