StoryUS Markets
Nvidia’s share price fell 6% on Tuesday, pushing the chipmaker’s year to date loss to 10% and erasing all gains made during 2026. The latest decline took the stock to its cheapest valuation since 2011 as trading hit the lows of the day.
The company’s market capitalization has shrunk by approximately $1.82T since October, when the stock hit a peak of $243 per share. Shares have fallen a total of 31% from that high, reflecting a sharp reversal in investor sentiment over the last two months.
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How it could play out
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How we got here
How it could play out
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Story, how it could play out
Investors treat the valuation reset as overdone after the recent China and AI-chip selloff. Large U.S. cloud customers continue to signal demand for Nvidia GPUs, limiting the near-term downside despite policy and competition concerns.
China-related policy risk becomes the dominant driver after Beijing’s H200 deployment bar. Investors discount a longer revenue gap from restricted China deployments and limited ability to sell high-end compliant chips into Chinese data centers.
The market increasingly treats Google’s accelerator expansion as a credible threat to Nvidia’s premium margins. This is less about a collapse in AI demand and more about a rotation from a single dominant GPU supplier toward custom silicon and alternative accelerators.
Nvidia responds with pricing, product, and geographic adjustments to offset the China deployment barrier. The outcome depends on whether regulators accept a lower-performance China-compliant chip and whether non-China demand can absorb available capacity.
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