Nvidia’s Sales Overhaul and a Short Seller’s Warning: A Chip Titan Under Pressure
Published on 07/03/2026 at 14:23 | Redaktion boerse-global.de
The chip giant is navigating a perfect storm of internal reorganization and external skepticism. Just days after installing a new sales chief from Microsoft, Nvidia finds itself in the crosshairs of Michael Burry, the investor who famously shorted the US housing market before the 2008 crash. Scion Asset Management, Burry’s fund, disclosed a bearish position against Nvidia alongside shorts on Tesla and the broader SOXX semiconductor index — a move he opened when the stock was trading near $198, citing parallels to the dot-com era.
The timing is hardly coincidental. The US economy added only 57,000 jobs in June, well short of the 110,000 that economists had penciled in, triggering a rotation out of technology and into defensive sectors. The Dow Jones Industrial Average surged to new highs above 52,000 points, while the Nasdaq Composite slid. Nvidia, meanwhile, closed at €170.58 on Thursday, more than 15% below its May record of €202.50.
That sell-off is part of a broader correction sweeping the semiconductor space. Micron tumbled 13% in July alone, Intel gave up 9%, and AMD shed 7%. The VanEck Semiconductor ETF dropped 5%, a sharp reversal after delivering a staggering 71% gain in the second quarter. What’s driving the rout? Reports that SK Hynix is slowing its expansion of high-bandwidth memory production, mounting doubts about the returns on massive AI infrastructure investments, and a more hawkish Federal Reserve under new chair Kevin Warsh have all contributed to the reassessment.
Against this unsettled backdrop, Nvidia is revamping its sales leadership. On June 28, the company announced that Ajay K. Puri, its executive vice president of worldwide field operations for 21 years, would step down. His replacement is Nicholas Parker, a 26-year Microsoft veteran, who takes the reins on August 24. The move signals a push to broaden the company’s commercial reach as large customers like Anthropic explore in-house chip designs with Samsung Foundry and Meta Platforms considers selling or leasing spare data-center capacity rather than ordering new GPU clusters.
Should investors sell immediately? Or is it worth buying Nvidia?
Nvidia’s response has been to experiment with new business models. It has introduced a revenue-sharing arrangement for cloud providers and participated in an $800 million funding round for Together AI, a GPU cloud startup valued at $8.3 billion. The board also authorized an $80 billion share buyback program, a nod to confidence in long-term cash generation. Analysts, meanwhile, are looking for second-quarter revenue of $91.73 billion, a 96% jump from a year earlier.
The shareholder meeting on June 24 produced several changes. All ten board members were confirmed, and the company switched from a qualified-majority to a simple-majority voting rule for future resolutions. Suzanne Nora Johnson joins the board on July 13, expanding it to eleven members. Three environmental and social proposals were defeated after management recommended voting against them.
Technically, the stock is in a consolidation phase. The 14-day relative strength index sits at 43, indicating neither overbought nor oversold conditions. Nvidia trades 5.42% below its 50-day moving average of €181.36 and roughly 4% above its 200-day average. On a month-to-date basis, shares have lost 7.41%, yet they remain 26.47% higher than a year ago and 6.47% ahead year-to-date. The forward price-to-earnings ratio has compressed to 20–22, well below the five-year average of 53 and even under the sector median of 34. With a PEG ratio of 0.49 and expected earnings growth of 81%, some value-oriented investors are starting to take notice.
Nvidia at a turning point? This analysis reveals what investors need to know now.
Burry, however, sees a bubble. His short bet lands at a moment when Nvidia’s dominance — it controls more than 70% of the AI accelerator market — faces potential erosion from both customers and competitors. Whether the new sales chief, the buyback program, and the strategic pivots can withstand that pressure will become clearer when the company reports quarterly results in late August. For now, the narrative is split between a stock that looks cheap on earnings and a market that is growing nervous about the sustainability of the AI boom.
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