Nvidia Stock Slips Despite Strategic Pivot to Recurring AI Revenue
Published on 07/04/2026 at 16:07 | Redaktion boerse-global.de
Nvidia finds itself in an unusual position. Its shares have shed more than 7% over the past 30 days, closing Friday at €171.98 — a 15% retreat from the May all-time high of €202.50. Yet beneath the surface price action, the company is quietly rewriting its business model. The chipmaker this week unveiled a plan to shift from one-time hardware sales to recurring revenue partnerships, but investors so far have been unimpressed.
The selloff mirrors a broader rotation out of high-profile AI names. Market watchers point to a large-scale reallocation: capital is flowing from Nvidia into memory chip makers such as Micron, SK Hynix and SanDisk, which have posted triple-digit gains. At the same time, technology profits are migrating into traditional industrial stocks within the Dow Jones. Nvidia’s management has acknowledged the shift indirectly — CEO Jensen Huang and CFO Colette Kress have been selling shares on a scheduled basis, even as the board authorized an $80 billion buyback program.
The strategic pivot, however, could fundamentally alter how Nvidia generates revenue. Instead of merely selling GPUs to data-center operators, the company is now co-building multi-tenant “AI Factories” with partners like Sharon AI and Firmus Technologies. Nvidia supplies the computing power — including its latest Grace?Blackwell GB300 chips — and receives a cut of the ongoing revenue those facilities produce. The model transforms a one-off sale into a recurring income stream tied to actual AI workload utilization. If it succeeds, Nvidia may decouple its earnings from the cyclical swings of hardware procurement cycles.
Should investors sell immediately? Or is it worth buying Nvidia?
Despite the stock’s weakness, the underlying business remains robust. Revenue grew 85% in the most recent quarter, with data-center sales surging nearly 200% year over year. Management expects second-quarter revenue of $91 billion — and that figure excludes any contribution from China. The company is also tackling supply-chain bottlenecks. Reports indicate that a key constraint for the new Vera Rubin platform, the supply of HBM4 memory, has been resolved, though the Rubin launch is now said to be delayed by one quarter. The transition from Blackwell to the Vera Rubin architecture is slated for the second half of 2026, and with HBM4 availability improving, Nvidia should be able to accelerate the rollout of higher-efficiency chips.
Technically, the stock is in a consolidation phase, not a trend reversal. The closing price of €171.98 sits 5.17% below the 50?day moving average of €181.36 but 4.73% above the 200?day average of €164.21 — a level that has held as support. The RSI of 43.8 suggests neither overbought nor oversold conditions. Analysts see a median price target of €263.59, implying roughly 53% upside from current levels.
The next major catalyst arrives on July 17, when manufacturing partner Taiwan Semiconductor (TSMC) reports earnings. TSMC’s results are widely viewed as a bellwether for the entire AI chip ecosystem. For Nvidia, the question is no longer whether AI demand will persist, but whether the market will begin pricing in its transformation from a cyclical hardware supplier into an infrastructure operator with predictable, usage?based revenue. The TSMC print could force that repricing.
Ad
Nvidia Stock: New Analysis - 4 July
Fresh Nvidia information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
Disclaimer regarding our articles: No investment advice, no buy or sell recommendation. Information on prices, companies, and markets is provided without guarantee; changes are possible at any time. Stock market transactions can lead to substantial losses. Our articles are created and reviewed in whole or in part automatically with the support of AI.
