Nvidia's market value is back above $5 trillion and all is well again. Now it needs to reclaim its status as a chip winner.
The AI chip maker has been a laggard in the semiconductor industry this year but there's evidence that it's starting to shake off that tag.
Nvidia is up 14% in 2026, compared with the PHLX Semiconductor Index's (SOX) 79% jump. But more recently, Nvidia has outperformed the index -- climbing 6% this month vs an 11% fall for the SOX. Over the past month the stock is flat, while the SOX is down 10%.
It's a small sample size and Nvidia has a long way to go to catch up but if the broader chip frenzy stalls, or even reverses, then the shares can continue to outperform.
The more immediate issue is whether the company can stay above the $5 trillion mark -- it has closed above that level on just 33 trading days out of 132 so far this year, according to Dow Jones Market Data.
The stock jumped 4.1% to $211.80 Tuesday, its highest closing price since June 15, amid a broader semiconductor rally.
It's been a volatile few days for the shares, which rose 4% Friday before falling 3.5% Monday. Anyone with an eye for statistical patterns may predict a fall Wednesday. The stock was down 0.1% ahead of the open Wednesday.
Nvidia was named a Barron's stock pick on May 13, when shares were trading at $226.
Write to Callum Keown at callum.keown@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
July 15, 2026 08:29 ET (12:29 GMT)
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