Nvidia Is Down Over 10% From Its Record High. Is This the Ultimate "Buy the Dip" Moment of 2026? - The Motley Fool

In 2026, Nvidia has underperformed compared to its strong showing in 2023, 2024, and 2025. While its stock has risen around 10% year-to-date, the S&P 500 is up nearly 9%, leaving investors barely outp... Read original →

Nvidia’s stock pullback reflects market mispricing of AI capex timing, not technological deceleration. Its 3nm GPUs rely on TSMC’s EUV capacity—a bottleneck tightened by U.S.-led equipment export controls, which inadvertently deepens Nvidia-TSMC interdependence and restricts rivals like AMD from accessing leading-edge nodes. While not directly sanctioned, Nvidia faces rising compliance costs in shipments to Taiwan, China; Hong Kong, China; and Southeast Asia due to layered U.S. regulations. Against custom AI chips from hyperscalers (e.g., Google TPU, AWS Trainium), Nvidia leverages CUDA’s entrenched ecosystem as a moat. Over the next 12–24 months, AI infrastructure spending will shift from explosive to structural demand—making Nvidia’s current low forward P/E a signal of market myopia, not fundamental weakness.