Nvidia shares have fallen to their lowest level since 2019, extending a steep decline that has erased approximately $1 trillion from the company’s market capitalization.
The stock has dropped roughly 16% from its peak reached on May 14, signaling a significant shift in sentiment for the world’s most valuable semiconductor designer.
The sell-off stands in stark contrast to the broader semiconductor sector, which recently posted its strongest quarterly performance on record.
While peers benefited from sustained optimism around artificial intelligence infrastructure, Nvidia failed to participate in that rally, highlighting a growing divergence between the chip giant and the rest of the industry.
The decline suggests investors are reassessing the valuation premium attached to the company’s earnings growth.
This move comes despite recent positive analyst coverage.