Nvidia $1 Trillion Value Drop

Nvidia's stock has fallen 16% from its all-time high on May 14, 2026, losing approximately $1 trillion in market value in less than two months. The decline is driven by a rotation within the semiconductor sector, with investors shifting focus to memory and storage stocks like Micron Technology, as well as rivals AMD and Intel, whose shares have doubled or tripled this year. Despite the selloff, Nvidia's fundamentals remain strong: analysts have raised profit estimates, and the company is projected to deliver $228 billion in profit on $393 billion in sales in fiscal 2027. Nvidia still holds 97% of the server GPU market. The stock now trades at 18 times forward earnings, cheaper than the S&P 500 and Nasdaq-100. Of 82 analysts, only three rate it a hold and one a sell, with an average price target of $302 implying over 50% upside. However, competition from customers like Alphabet and Amazon deploying custom chips, and a crowded trade unwinding, are headwinds.