Despite the AI euphoria, NVIDIA shares have recently been stalling and are therefore lagging behind the broad chip rally. But these impulses could trigger the next price increase.
• NVIDIA shares are stagnating despite the AI boom and chip rally
• Analysts remain optimistic
• Quarterly figures could provide the next impulse
Despite ongoing euphoria in the semiconductor sector, NVIDIA shares have been surprisingly subdued recently. While the broad chip and AI sector is enjoying a new rally, the US chip giant’s price is stagnating around the $200 mark. Although the stock ultimately rose by 5.77 percent to $207.83 on Wednesday, May 6, following the announcement of a partnership with Corning, the stock had previously lagged behind the general chip rally. So far, NVIDIA has not been able to sustainably capitalize on the momentum of the broader semiconductor rally. Against this background, the question remains open for investors as to what could give the share a new boost – especially with a view to the coming quarterly figures.
NVIDIA shares pause rally despite AI euphoria: Analysts remain optimistic
Despite the current consolidation, many analysts still see potential. “NVIDIA has delivered stunning revenue growth over the past 12 quarters, and there is no indication that this momentum will slow as demand for AI increases, not decreases. NVIDIA stock is fairly valued and may even be undervalued at this time,” Barron’s quoted Julian Koski, chief investment officer at New Age Alpha, as saying.
From the point of view of many market observers, the valuation also suggests further potential: NVIDIA is currently trading with an expected price-earnings ratio of around 24. For comparison: Competitor Advanced Micro Devices (AMD) has just under 53 – with higher short-term volatility, as Barron’s emphasizes.
AI demand remains strong – but the market is waiting for the next impulse
Even strong operational signals are currently not enough to sustainably move the stock. The Taiwanese manufacturing partner Foxconn reported an increase in sales of almost 30 percent in April compared to the previous year, driven by AI products.
“Driven by strong advance torque achieved in AI products [Cloud- und Netzwerkprodukte] “The second quarter is a traditional off-season for the ICT industry, with major products entering a transition phase between old and new models. However, AI racks are expected to continue to maintain a growth trend,” it said. Still, according to Barron’s, NVIDIA shares barely responded to these positive signals – an indication that investors are currently waiting for a stronger catalyst.
Upcoming quarterly figures as price drivers? This is what investors should know now
Wall Street also remains optimistic: According to TipRanks, 40 of 42 analysts recommend buying NVIDIA shares, while only one expert recommends holding and one recommends selling. The average price target is $274.38, approximately 29.73 percent above the recent closing price of $211.50 (as of May 7, 2026). Analysts therefore continue to see significant upside potential.
The next big boost for NVIDIA stock could come on May 20, when the company reports its quarterly results. Expectations remain high as the AI boom continues to be a key growth driver.
For investors, the current development shows one thing above all: NVIDIA shares remain a long-term AI beneficiary, but in the short term they react increasingly sensitively to expectations and less to individual operational impulses. While fundamental demand for AI chips remains strong, according to market observers, many investors are waiting for a clear new catalyst – such as convincing quarterly figures or an increase in forecasts. In the short term, this may lead to increased volatility, while in the medium term, structural AI demand continues to provide tailwind. Until then, however, NVIDIA shares are likely to remain one thing above all: a candidate to watch in a hot but selective AI market.
Bettina Schneider, editorial team at finanzen.net
This text is for informational purposes only and does not constitute an investment recommendation. finanzen.net GmbH excludes any claims for recourse.
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