Nvidia (NASDAQ:NVDA | NVDA Price Prediction) stock took a heavy hit to the chin on Tuesday alongside the rest of tech, tanking more than 4% in a single day as investors fled to the exits in what seemed to be a mild market panic as things escalated a bit in Greenland, to say the least.
Of course, a sudden rise in geopolitical uncertainty shouldn’t be a reason to hit the panic button, even as the U.S. dollar and Treasuries took some big steps lower as gold and silver prices continued to rocket through the roof. And with Ray Dalio bringing up the potential of “capital wars,” it’s certainly not an easy time to be an investor in 2026.
Indeed, 2025 was a great year, as were the two years before that, and it feels tempting to take profits where there are still profits to be had. While it’s been a rough past couple of sessions for the U.S. stock market, especially if you’re heavy in the Mag Seven stocks, the S&P 500 is down less than 3%. Undoubtedly, it’s easy to get caught up in a bit of a panic at a time like this, even as AI looks to disrupt various industries far beyond tech.
Nvidia stock goes flat as semis surge
While the relatively flat past three months for Nvidia might be a sign for some that it’s time to get out before the next high-stakes quarter, I do think that bailing on the name amid its consolidation could accompany a great deal of upside risk as well, especially with Vera Rubin in full production, likely ready to go in the second half of the year. Who knows? Perhaps Nvidia might be ready to launch ahead of schedule, as it seeks to meet scorching demand for the latest hardware.
In any case, Michael Burry’s bearish bets are starting to look quite smart, especially with Nvidia stock now back below $180 per share. There’s no question that Nvidia faces a high bar going into its coming quarterly earnings results. And many shareholders might not have the patience to wait for the first quarter that includes Vera Rubin sales. For now, it looks like Nvidia is one of the few semiconductor stocks that’s being left behind. Shares of Nvidia have gained just over 3% in the past six months while the iShares Semiconductor ETF (NASDAQ:SOXX) has risen over 36%.
It’s not time for Nvidia shareholders to worry — yet
Perhaps Nvidia’s valuation is catching up to it, bringing forth the need for a sideways correction to properly digest the premium valuation. Either way, there’s also uncertainty regarding what happens once Google TPUs (whose parent company is Alphabet (NASDAQ:GOOGL)) and similar, more-efficient chips become more common in the next generation of AI data centers. Could it be that Nvidia is finally facing serious challenges? It’s hard to tell, but Alphabet seems like the new AI winner and perhaps the next Nvidia as the momentum shifts its way.
Nvidia’s H200 chip’s future in China seems ot be in an uncertain state, with China recently blocking imports shortly after the U.S. greenlighted exports along with a 25% fee. It’s not yet known if a long-term ban on the chip is on the table or if a few things need to be ironed out first.
Either way, it seems like Nvidia’s H200 China boom might not be happening anytime soon or at all, and that might be a drag for shareholders who were expecting a timely China catalyst ahead of the Vera Rubin launch. It’s hard to believe that there’s much of a China boom narrative that’s still priced into the stock right here.
There’s no question that Chinese demand for Nvidia’s chips is still strong. Still, the big question is whether a domestic chip provider can step up to the plate. Huawei chips (think the Ascend line) have been gaining traction of late, but, of course, they’re nowhere near the level of Nvidia. I guess the big question is whether China will pivot if its own AI chips aren’t up to the challenge as the world enters the Vera Rubin era.
Top Gaining Stocks
Top Losing Stocks