Nvidia Faces Six-Day Underperformance Streak, Shares Down 23% Since May
NVDA•Nvidia shares have underperformed the S&P 500 for six consecutive trading days, marking the longest relative lag since September 2025 and driving a 23% drop from May’s record high. Institutional rotation into memory-chip stocks, mounting AI capex concerns and Fed rate-hike fears have weighed on Nvidia ahead of hyperscaler earnings.
1. Underperformance Overview
Nvidia has underperformed the S&P 500 for six consecutive trading days, its longest relative lag since September 2025. Over that period, the stock has fallen approximately 23% from its mid-May record high. This extended pullback marks a stark reversal from the rally earlier in the year, as investors reassess the pace of growth in AI hardware demand.
2. Drivers and Outlook
Investors have rotated capital toward memory-chip suppliers, reducing exposure to high-valuation AI hardware names. Concerns over massive AI capital expenditures—projected to exceed $700 billion this year—and the prospect of a Federal Reserve rate hike have added selling pressure. Market participants are now eyeing hyperscaler earnings reports due in the coming weeks, which could reignite interest if companies reaffirm robust AI spending plans.
