The mystery of Nvidia’s underperforming stock

Nvidia may be the biggest name in the explosion of artificial intelligence, but the stock has been behind its peers in the last few months.

“ChatGPT has been released on 30 November 2022 since Nvidia is difficult to perform stronger than Nvidia,” Bespoke Investment Group said on Wednesday. Market Research Group, NVIDIA shares on August 12 with the records increased by 982%, he said.

However, the foundation of Nvidia seemed to be increasingly shaky than other AI -related stocks. Document partner Taiwan Semiconductor Manufacturing, Data Storage Company Seagate Technology and memory chip manufacturer Micron, including a stock basket has gained 68.2% since 31 October 2024; Nvidia has just won 28.3% since then.

Low performance is evident even when comparing NVIDIA with not only with chip makers, but with other stocks. Bespoke’s Constellation Energy, Vistra, NRG Energy and Quanta Services, such as Energy and Data Center infrastructure stocks such as the “Picks & Shovels” basket has won about 61% since 31 October-more than twice the Nvidia.

Bespoke, the last leg of the performance gap began in the beginning of this month with Oracle’s earnings, he said. An important increase in Oracle accumulated work for contracted work.

“We don’t have a strong thesis on why NVDA has such a relative low performance last month,” the research group said. Investor expectations were high, but Nvidia Second quarter earnings report It was far from being a bust. Corrected earnings, income and third quarter income guidance came above expectations.

Investors may think that the company’s problems in China are scary. NVIDIA and competitor advanced micro devices to Trump management last month 15 % Cutting AI-chip sales in the country. Then, on Wednesday, Chinese companies Banned from buying Nvidia’s semiconductors.

But the stock actually followed confirmation From the White House in August. And even though their stocks rolled on Wednesday, they returned on Thursday when 2.6%fell.

Even if Chinese sales challenges, Bespoke, Bespoke, said, “Other buyers look as desperate to take their hands to their GPUs,” he added.

However, the GPUs market may not be as strong as once. Obtioned, GPUs rental costs decrease and a graphic processing unit of the rental costs of the Silicone Data H100 Rental Index shows that this is true. The index rose to $ 2.89 per hour in mid -April, but fell to $ 2.41 after a month before falling to $ 2.15 on Thursday.

“Some of this continues to chase prices for a certain capacity level, but the data centers continue to chase prices for a certain capacity level,” Wespoke said, “Some of them are often more efficient Blackwell lines.”

It’s hard to predict where Nvidia is going – and the stock doesn’t fall, it’s just delayed. In fact, worries can be too much about anything. However, there is a way to smell problems before making investors in the market and creates a Quandry.

Bespoke wouldn’t be faced with a narrative test of a secular winner for the first time, before it continued to increase, Bes Bespoke wrote. “However, the low performance of the largest US stock listed, especially compared to other adjacent names, we are a little surprised.”

And now investors Nvidia’s partnership An announcement on Thursday to improve the chips for data centers and personal computers for Intel.

It is almost enough to give up AI completely.