Nvidia Stock Sheds 7% in a Week as 'Hot Money' Rotates into Memory-Chip Rivals
Published on 06/28/2026 at 10:12 | Redaktion boerse-global.de
The gap between Nvidia’s operational strength and its stock-market performance has rarely been wider. While the company posted record quarterly revenue of $81.6 billion in the first quarter — a 85% jump from a year ago — speculative capital is fleeing the chip giant at a pace not seen in over a year. The shares closed the week at €168.80, marking a decline of more than seven percent and the worst weekly showing since April 2025.
Behind the sell-off lies a pronounced sector rotation. Investors are pulling cash out of AI accelerator stocks and pouring it into memory-chip makers, betting that the boom in high-bandwidth memory will outlast the current spending cycle on Nvidia’s hardware. The trigger came when Micron Technology reported blowout quarterly results, sending its stock surging 16% in a single session. Analysts see memory-module prices staying elevated well into 2028, and each new Nvidia chip generation demands more memory capacity — a dynamic that currently benefits competitors like Micron more than it does the market leader.
That rotation has overwhelmed Wall Street’s otherwise bullish consensus. Morgan Stanley reiterated its overweight rating with a $288 price target, pointing to Nvidia’s roughly 85% grip on the AI processor market. Goldman Sachs is even more emphatic, setting a $285 target and highlighting a massive $80 billion share-buyback programme alongside rising cloud-infrastructure spending, which the bank expects to total around $1 trillion by 2027. Across the street, 62 analysts rate the stock a strong buy with an average price target near $299.
Should investors sell immediately? Or is it worth buying Nvidia?
The fundamental picture supports that optimism. For the full fiscal year 2026, Nvidia’s revenue climbed 65% to nearly $216 billion, with profits rising in lockstep. The company’s CUDA software platform continues to lock in customers, creating a moat that pure hardware specifications from rivals such as AMD — which holds less than 5% of the AI-chip market — struggle to cross.
Technically, however, the stock is under pressure. At current levels, Nvidia trades roughly 7% below its 50-day moving average and about 17% off the 52-week high of €202.50 set in May. The relative strength index sits at 38.2, nudging into oversold territory — a zone that has historically attracted bargain hunters. But for now, the weight of rotating capital is keeping buyers at bay.
The next big catalyst arrives on August 26, 2026, when Nvidia reports its second-quarter results. Analysts are pencilling in revenue of around $92 billion. Until then, macro data on consumer sentiment and the labour market will drive risk appetite in the technology sector. Should cloud hyperscalers reaffirm their AI investment plans in the coming days, institutional conviction may soon outweigh the speculative outflow that has punished the stock this week.
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