Nvidia Shares Slide as Memory Stocks Rally on Micron’s 84.9% Margin
NVDA•Nvidia shares declined this week as momentum funds rotated into memory stocks after Micron posted an 84.9% gross margin and guided for roughly $50 billion in quarterly revenue with about $31 in adjusted EPS. Goldman Sachs listed Nvidia among three preferred semiconductor picks, citing stronger revenue visibility than Intel.
1. Momentum Funds Rotate Out of Nvidia
Over recent sessions, short-term investors have shifted capital into memory-chip names with near-term profit visibility, causing Nvidia to underperform its Magnificent Seven peers as momentum traders chase tighter AI hardware supply bottlenecks.
2. Micron’s AI Hardware Pricing Power
Micron reported an 84.9% gross margin and guided for roughly $50 billion in quarterly revenue alongside about $31 in adjusted EPS, underscoring the premium pricing power memory suppliers command amid surging AI demand.
3. Goldman Sachs Advocates Nvidia
Goldman Sachs named Nvidia one of three top semiconductor picks, highlighting its superior revenue visibility compared to Intel and a compelling risk-reward profile driven by continued AI infrastructure investments.
