- Shares of NVIDIA fell 3% Tuesday amid a broader tech selloff triggered by hawkish Fed signals on inflation.
- The AI chip market Nvidia once dominated is now packed with competition, stalling its meteoric stock growth in 2026.
- Despite recent pressure, analysts like Oppenheimer’s Rick Schafer maintain buy ratings, predicting a potential rebound to $265 per share.
Nvidia shares fell 3% on Tuesday as the technology sector continued a significant selloff that began earlier this month. The chipmaker faces downward pressure from global market declines and persistent inflation concerns in the United States.
Investors shifted to risk-off mode, selling market leaders after a hawkish Federal Reserve signaled last week that inflation remains too high. Consequently, the Technology sector led the declines, dragging the Nasdaq Composite lower for a second consecutive session.
While Nvidia stock has surged over 900% in the last five years, that growth has stalled this year. It is up only 8% year-to-date, far below other leading chip stocks like Micron and AMD.
Other semiconductor manufacturers have gained ground, slimming the gap with Nvidia and lowering the reliance on its chips. Meanwhile, the entire tech sector is under pressure from a broader sell-off fueled by debt and profitability concerns.
Nvidia stock opened Wednesday at $207 but fell to $200 midday, down nearly 7% over the past month. However, some analysts remain bullish on the stock’s potential for a solid rebound.
Investment banking firm Oppenheimer recently gave Nvidia a buy rating, predicting double-digit gains. Rick Schafer, the Semiconductor Equity Analyst at Oppenheimer, wrote that the stock could reach a high of $265.
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