Nvidia's Revenue Surged 85% — So Why Is the Stock Down 17%?
28.06.2026 - 20:12:11 | boerse-global.de
Nvidia delivered another quarter of eye-popping numbers: total revenue jumped 85% to $81.6 billion, with its data-center segment soaring 92% to more than $75 billion. Yet the stock closed at €168.80 on Friday, shedding over 7% on the week and now trading more than 16% below its 52-week high from May. The gap between operational strength and market sentiment has rarely felt wider.
Part of the disconnect stems from a subtle but telling data point: the rental price for Nvidia’s flagship Blackwell B200 chip has tumbled to $4.22 an hour, down from over $6 in late May. Options traders view this as an early signal that demand may be cooling, even as the company prepares to launch its next-generation Vera-Rubin system in the second half of 2026.
Investors are rotating capital into cheaper alternatives. Rivals AMD and Intel have more than doubled in 2026, while Nvidia’s share price has managed only a modest gain of roughly 5% since the start of the year. The rotation reflects a growing wariness about the sustainability of massive tech infrastructure spending.
The hyperscalers — Amazon, Google, Meta and Microsoft — are on track to invest a combined $750 billion in data-center buildouts this year alone. Goldman Sachs projects that figure could surpass $1 trillion by 2027. The spending spree is a boon for chipmakers, but many market participants doubt that the pace can last, fanning fears of a bubble.
Should investors sell immediately? Or is it worth buying Nvidia?
Valuation, meanwhile, has become a two-edged sword. Nvidia now trades at a forward price-to-earnings ratio of 25, a discount to many other semiconductor names. Yet the problem is not the current multiple — it is the sky-high expectations baked into the stock. After Nvidia reported its May-quarter results, the data-center revenue had nearly doubled, but the share price still slipped. Analysts note that the company has raised the bar so high that beating it is becoming almost impossible.
Adding to the uncertainty, Nvidia has resumed shipments of its H200 chip to China. The most advanced architectures remain off-limits, but the H200 is powerful enough to train leading AI models, as demonstrated by the strong benchmark scores from Chinese AI firm DeepSeek. That may reduce some urgency for Chinese buyers to seek Blackwell exports, though it also opens a revenue stream that had been squeezed by export controls.
Chart technicians are watching a set of critical levels. The stock closed exactly at its 100-day moving average at €168.66, a line that will be tested immediately on Monday. A break lower would put the 200-day moving average at €163.66 in focus — the last major support for bulls. The 50-day line, now at roughly €181, has flipped into resistance. The relative strength index sits at 38.2, signaling a near-oversold condition but not yet flashing a clear buy signal.
Market volatility has spiked to an annualized 38% over the past 30 days, making the stock highly sensitive to macro catalysts. On Wednesday, Federal Reserve Chairman Warsh speaks in Portugal; any hawkish tone would add pressure on richly valued growth names. Then on Thursday comes the US jobs report for June, with economists expecting 172,000 new positions. A much stronger-than-expected print could reignite rate-hike fears and hit tech stocks especially hard.
Nvidia at a turning point? This analysis reveals what investors need to know now.
Despite the bearish price action, analysts remain overwhelmingly bullish. The consensus price target sits at $295, implying more than 50% upside from current levels. Their thesis rests on the idea that the fundamental growth story is intact and that the correction will eventually attract buyers once near-term volatility subsides.
For now, however, Nvidia finds itself caught in a bearish tug-of-war. The company continues to generate historic revenue growth and is poised to benefit from the Vera-Rubin upgrade cycle. But the stock is pricing in perfection, and any stumble — in demand, in macro data, or in competitive dynamics — could test the resolve of even the most loyal shareholders. The 200-day line at €163.66 may well decide the near-term direction.
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