Nvidia’s $1-trillion wipeout leaves AI titan trading at pre-boom prices Nvidia Corp.’s stock has plummeted, losing roughly $1 trillion in market value in less than two months, pushing the chipmaker’s shares to levels not seen since before the AI boom. The company, once the hottest stock on Wall Street, is now trading at 18 times forward earnings, a valuation lower than the S&P 500 Index and the Nasdaq 100 Index. This decline reflects a significant shift in investor sentiment as the AI trade moves away from Nvidia toward competing semiconductor manufacturers, particularly those in the memory and storage sectors. Despite its dominant position in the artificial intelligence data center market, Nvidia’s stock has fallen 16% since hitting an all-time high on May 14. The selloff has been driven by a reallocation of capital toward companies like Micron Technology Inc., which has benefited from soaring demand for high-bandwidth memory chips. Micron’s shares have surged 229% in 2026, outperforming Nvidia, which is now the third-worst performer in the Philadelphia Semiconductor Index. The chip index itself has risen 74% this year, with Micron leading the charge. Analysts attribute the shift to changing market dynamics. “Sentiment has moved on,” said Michael Bailey of Fulton Breakefield Broenniman. “You’re seeing these companies where expectations were very low—the Microns of the world—stealing the spotlight.” While Nvidia’s revenue growth remains robust, its valuation has made it cheaper than many stocks in the S&P 500, including traditional industries like candy maker Hershey Co. and utility Dominion Energy Inc. Randy Hare of Huntington Bank noted that Nvidia’s consistent performance and steady profitability suggest it is undervalued at current levels.#micron_technology_inc #nvidia_corp #alphabet_inc #advanced_micro_devices_inc #intel_corp
