Nvidia has lost roughly $1 trillion in market capitalization since its all-time high on May 14, with the stock down about 16% from that peak as of early July. The chipmaker now trades at 18 times forward earnings — its lowest valuation multiple since before the AI boom accelerated in early 2019.
The slide reflects a rotation of investor money rather than a loss of confidence in AI spending. Traders have shifted toward previously overlooked semiconductor names like Micron, up 229% in 2026 on soaring high-bandwidth memory prices, as well as AMD, Intel and custom chips built by big customers such as Alphabet and Amazon. "Sentiment has moved on," said Michael Bailey of Fulton Breakefield Broenniman. "You're seeing these companies where expectations were very low — the Microns of the world — stealing the spotlight."
Despite the pullback, Nvidia's underlying business shows no sign of weakening: its share of the server GPU market actually grew to 97% by the end of 2025, and analysts keep raising earnings forecasts. Bank of America reiterated a buy rating and $350 price target on July 8, betting on a data-center market that could exceed $1 trillion by 2030. Of 82 analysts covering the stock, 78 still rate it buy or strong buy.