Nvidia $NVDA has tumbled to its lowest market cap since early 2019, before the generative AI boom lifted the chipmaker to the top of Wall Street. Since peaking on May 14, shares have shed about 16%, wiping out roughly $1 trillion in market capitalization.
At 18 times forward earnings, Nvidia stock now sits below the broader market — the S&P 500 fetches more than 20 times and the Nasdaq $NDAQ 100 commands nearly 23 times, according to Bloomberg. By that measure, the chipmaker is less expensive than approximately half of all S&P 500 components, a list that includes candy maker Hershey and utility Dominion $D Energy.
None of this reflects a deteriorating business case. Analysts have continued to lift earnings forecasts, and Nvidia's grip on the server GPU market — roughly 97% at the end of 2025, up from 95% the year before — has shown little sign of loosening. The shift instead reflects investors rotating into other parts of the semiconductor sector, particularly memory and storage stocks.
Within the Philadelphia Stock Exchange Semiconductor Index — up 74% this year — Micron $MU has emerged as the standout gainer, rising 229% in 2026 on top of a 239% surge in 2025. AMD $AMD and Intel $INTC have also posted double- or triple-digit advances, while Nvidia has managed only a 5.6% gain, lagging the S&P 500's 9.6% rise.
Micron, Intel, and AMD added roughly $2 trillion in combined market capitalization during the second quarter, as investors broadened their AI holdings beyond Nvidia. Elevated prices for high-bandwidth memory chips have fueled Micron's run, with the company's third-quarter gross margin climbing to 84.9% from 39% a year earlier.
"Sentiment has moved on," Michael Bailey, director of research at Fulton Breakefield Broenniman, told Bloomberg. "You're seeing these companies where expectations were very low — the Microns of the world — stealing the spotlight."