Nvidia stock was edging down early Monday. The chip maker still wasn't benefiting from major spending announcements on artificial intelligence.
The shares were down 1.8% at $207.11 in early trading. The daily move was broadly in line with the wider market, with the technology-heavy Nasdaq Composite down 0.9%. In fact, Nvidia was holding up better than the PHLX Semiconductor Index, which was falling 4%.
But Nvidia is still struggling to match the chip sector overall. The PHLX has risen 75% this year through Friday's close, compared with a 12% gain for Nvidia.
That's despite more good news around AI spending. Meta Platforms on Monday announced it would raise spending on a Louisiana data center to more than $50 billion. Along with SpaceX, Meta is a major Nvidia customer which is training its latest AI models on Nvidia hardware.
"Fragmentation in the LLM [large language model] space is a good thing for Nvidia," said John Belton, portfolio manager at Gabelli Funds. "While they still have an opportunity to grow share with [Claude developer] Anthropic, it isn't necessarily a great thing for Nvidia longer term if the model-as-a-service space starts to look like a winner take all market."
Wall Street is still overwhelmingly positive on Nvidia stock, which now trades at a forward price-to-earnings ratio of less than 20 times, according to FactSet. The average price target from analysts is $313.39.
Mizuho Securities analyst Vijay Rakesh reiterated an Outperform rating and $300 target price on Nvidia stock on Saturday, arguing it would be a beneficiary from $1.2 trillion in capital expenditures on data centers next year.
Nvidia was named a Barron's stock pick on May 13, when shares were trading at $226.
Write to Adam Clark at adam.clark@barrons.com
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(END) Dow Jones Newswires
July 13, 2026 10:50 ET (14:50 GMT)
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