New York, June 22, 2026, 17:49 EDT
Nvidia finished Monday’s session down 0.97% at $208.65, with the stock moving between $207.72 and $213.99. Large tech names weighed on the Nasdaq Composite, which fell 1.3%. The S&P 500 dropped 0.4%. The Dow managed a 0.3% gain.
Nvidia’s fall is drawing attention since the stock is still the best read on demand for the chips used in generative AI. Investors have been pressing the top cloud companies, or hyperscalers, for better signals that their big spending on AI will turn into real revenue.
“This is more of a broader sector pullback on ongoing anxiety over tech companies’ massive capital spend on the AI infrastructure,” said David Wagner, head of equity and portfolio manager at Aptus Capital Advisors. Reuters
Chip names moved in different directions. Intel added 5.2%. Advanced Micro Devices was up 2.7%. Micron Technology rose 6.9%. Investors rotated within semiconductors instead of pulling money out of the group.
“This is a very sentiment-driven sector and the group tends to trade together on a day-to-day basis,” said Bill Northey, senior investment director at U.S. Bank. Northey also said some of the market’s strongest fundamentals are still connected to the AI data-centre buildout. Reuters
Nvidia on Monday said its next AI system might cut down on cooling water for data centers. “The water consumption challenge for data centers is largely solved,” chief sustainability officer Josh Parker said. Axios
The risk is obvious. If cloud buyers pull back on data-centre spending or if Thursday’s Personal Consumption Expenditures data, the Fed’s preferred inflation gauge, pushes bond yields up, Nvidia’s valuation could take a hit. “It’s imperative that the AI infrastructure buildout theme remains intact,” said Nathan Peterson, director of derivatives research and strategy at Schwab. Schwab Brokerage
Nvidia set strong expectations last month, projecting fiscal second-quarter revenue at $91 billion, give or take 2%. That’s ahead of the $86.84 billion consensus from Wall Street, according to LSEG. Revenue for the first quarter was $81.62 billion. “The lingering question is whether it can convince investors the AI buildout has durability into 2027 and 2028,” eMarketer analyst Jacob Bourne said. Reuters
Nvidia’s next event on the calendar is its virtual annual shareholder meeting, set for Wednesday, June 24 at 9 a.m. Pacific.
