Tech giant Nvidia is experiencing a significant shake-up in the capital market, as the company's market value plunged to its lowest level since the beginning of 2019 – the period preceding the great generative artificial intelligence rally, which propelled the chipmaker to the top of Wall Street. Since the stock reached its peak on May 14, 2026, the company's securities have lost about 16% of their value, a move that led to a dramatic wipeout of about $1 trillion from its total market value.
According to Bloomberg data, following the negative sentiment, Nvidia's stock is currently trading at a forward price-to-earnings ratio of 18 – a figure that places it below the broader market. For comparison, the S&P 500 index enjoys a multiple of over 20, while the Nasdaq 100 index trades at a multiple of nearly 23. According to this metric, the leading chipmaker has become cheaper than more than half of the companies comprising the S&P 500 index.
It is important to emphasize that the drop in the stock price does not reflect any harm or weakening in the company's actual business condition. Wall Street analysts have actually continued to raise the company's profit forecasts, and Nvidia's firm grip on the server GPU market showed no signs of weakening, with its market share climbing to about 97% at the end of 2025, compared to 95% the previous year. The current shift mainly reflects a trend in which investors are rotating and moving funds to other parts of the semiconductor sector, with an emphasis on shares of memory and storage companies.
Within the Philadelphia Semiconductor Index, which recorded an impressive 74% increase this year, Micron emerged as the biggest winner. Micron's stock surged by 229% in 2026, following a 239% surge recorded in 2025. Competitors AMD and Intel also posted double- or triple-digit gains, while Nvidia settled for a mere 5.6% increase – a figure lagging behind the S&P 500 index's 9.6% rise.
The broader picture shows that during the second quarter, Micron, Intel, and AMD together added about $2 trillion to their combined market value, while investors sought to diversify and expand their artificial intelligence holdings beyond Nvidia. Micron's meteoric run was heavily influenced by high prices for high-bandwidth memory chips, which jumped the company's gross profit margin in the third quarter to 84.9%, compared to just 39% the previous year.