Nvidia's shares have been under pressure, losing approximately 3% over the past month, despite a 12% increase in 2026. This contrasts sharply with the VanEck Semiconductor ETF, which has surged 84% this year and 15% in the last month.
The focus of Wall Street has shifted towards memory chips and infrastructure, benefiting companies like Micron Technology and Sandisk, which have seen nearly 60% gains in the past month. Additionally, the compute price for Nvidia's flagship B200 GPU has decreased from a peak of $6.11 on May 30 to $4.22 by June 21, raising concerns among traders about future pricing.
Seoyoung Kim, a finance professor, highlighted the uncertainty in demand for computing power, complicating production decisions for manufacturers like Nvidia.
However, a recent agreement between Google and SpaceX to rent AI computing capacity, involving 110,000 Nvidia GPUs, has led RBC Capital Markets to express optimism about Nvidia's prospects for the latter half of 2026 and into 2027, suggesting that the company is well-positioned against competitors in the short term