The world’s favorite AI trade is having an identity crisis. NvidiaNVDA

has shed ~$1T in market cap since May 14, dropping 16% to its lowest valuation since early 2019 — now cheaper than the broader stock market. Analysts haven’t gotten the memo, hiking profit estimates 13% in three months.

• On a forward price-to-earnings basis,NVDA
  trades at just 18x — trailing the S&P 500’s 20x and the Nasdaq 100’s nearly 23x.
• Additionally,  the Philadelphia Semiconductor Index has surged 74% this year, whileNVDA
  has climbed only 5.6% — the third-worst performer among its 30 stocks.

Debunking the bear case: Amid the selloff, investors have piled into memory names like MicronMU

, which have tripled in 2026. Bank of America calls that overblown, arguing Nvidia’s size and pricing power can absorb rising memory costs with room to spare. The bank’s analyst Vivek Arya even expects the pricier next-gen Rubin platform to offset those costs entirely, keeping gross margins in the mid-70% range. Despite the rotation, Nvidia still controls 97% of the server GPU market, with August earnings to prove its moat still holds.