By Brian Sozzi
Publication Date: 2026-08-26 09:35:00
Nvidia’s (NVDA) stock isn’t having its typical year.
No epic gains on earning reports. Nvidia stock has fallen in response to earnings in six of the past eight quarters, including the last four, per Yahoo Finance AlphaSpace analysis.
No major out-performance versus the S&P 500. Nvidia’s stock is up 14% year to date, while the S&P 500 is up 12%.
No major out-performance versus other key players in the AI chip supply chain. Micron (MU) shares have gained a sizzling 225%. Intel (INTC) is up 138%. AMD (AMD) is up 124%.
Raymond James analyst Simon Leopold lists four reasons the chip king stock’s is stuck in neutral in a new note:
How much more Nvidia can investors own: With a market cap of $5.2 trillion, the market may have a limited appetite for further exposure to Nvidia says Leopold.
Lack of belief creep: Fear that the AI boom turns to a bust is on creeping up, Leopold notes.
Law of large numbers: Decelerating growth is likely to come to Nvidia more obviously soon given how fast it has grown the past two years.
Peak worries: Peaking growth and peaking margin are concerns on Nvidia, says Leopold.
“We have been disappointed with the stock’s year-to-date performance with the shares up only 12% largely matching the S&P 500 index. The stock trades with a 2027 GAAP P/E ratio of less than 15x, which is below the S&P 500’s 18.6x. The discount strikes us as fundamentally illogical…
