Nvidia stock slips below $5 trillion, analysts see 20% beat

Nvidia Corporation's stock, a bellwether for the artificial intelligence sector, opened at $200.09 on Wednesday, July 1, reflecting a decline of more than 11% during the month of June. This pullback has brought the company's market capitalization below the $5 trillion mark, a retreat from its all-time closing high of $235.47 reached on May 14.

The recent underperformance, which marks the stock's longest stretch of lagging behind the S&P 500 since September 2025, is attributed by analysts to a sector rotation out of high-flying AI hardware stocks and into other areas like memory chips. Broader concerns about the sustainability of massive capital expenditures by major technology companies on AI infrastructure, coupled with anxieties over potential Federal Reserve interest rate hikes, have also contributed to the pressure.

Despite the sell-off, a prominent semiconductor research firm, SemiAnalysis, has published a report suggesting the downturn may be overdone. The firm projects that Nvidia's data center compute revenue could exceed Wall Street consensus estimates by 20% in the second half of fiscal year 2027, citing comprehensive supply chain checks. A key driver for this...