By Adam Spatacco, The Motley Fool
Publication Date: 2026-02-10 20:25:00
Nvidia has lost $400 billion of market value so far in 2026.
After soaring 39% last year, Nvidia (NVDA 0.54%) stock has gotten punished by investors so far in 2026. While a 6% decline might not seem dramatic, consider the ongoing sell-off has wiped out roughly $400 billion of Nvidia’s market value so far this year.
Let’s explore the root causes of Nvidia’s sell-off over the last month and assess if now is an opportunity for smart investors to buy the dip or run for the hills.
Image source: Nvidia.
Why is Nvidia stock going down?
While earnings season is in full swing, Nvidia has yet to report fourth-quarter results. Given investors don’t have anything specific to point to regarding Nvidia’s underlying business trends, the stock’s sell-off looks all the more peculiar.
Below, I’ve detailed a few headwinds plaguing Nvidia investors right now:
- Perception of GPU dominance: Nvidia had a first-mover advantage in the GPU space, enabling it to swiftly build a structural moat in the early days of the AI revolution. While it’s taken a few years for it to find its footing, Advanced Micro Devices is beginning to make up some ground in the GPU market. Big tech is increasingly complementing its existing Nvidia infrastructure with chips from AMD — leading some investors to believe the chip king’s growth could be headed for meaningful deceleration.
- The rise of custom silicon: Hyperscalers such as Meta Platforms and Alphabet have been collaborating with Broadcom to design custom…