The incredible chip sector rally is leaving behind its most notable stock. What's wrong with Nvidia?
The GPU-maker is flat since April 27, while Intel and Micron have popped more than 30% in that time.
AI Summary
Nvidia's stock has remained flat since late April while competitors like Intel and Micron have surged over 30%, making it a notable laggard in the semiconductor sector despite the broader AI boom. Analysts attribute the underperformance to memory chip bottlenecks and hyperscalers' progress in developing their own in-house chips like Alphabet's TPUs and Amazon's Trainium chips, which reduce their dependence on Nvidia. Wall Street has incorrectly priced in a peak in AI capital expenditure that analysts say is not imminent, with hyperscalers actually increasing their capex projections for 2026, suggesting sustained strong demand for AI infrastructure over the next few years.