Nvidia Gains 8.7% in 2026 but Trails S&P 500 as Revenue Growth Hits 85%
Updated
Updated · The Motley Fool · Jul 12
Nvidia Gains 8.7% in 2026 but Trails S&P 500 as Revenue Growth Hits 85%
3 articles · Updated · The Motley Fool · Jul 12
Summary
Nvidia shares are up about 8.7% in 2026, lagging the S&P 500’s 10.2% gain despite the chipmaker’s dominant position in AI infrastructure.
Revenue rose 85% in the latest quarter, and Wall Street expects 96% growth in Q2, showing the stock’s weaker relative performance is not being driven by slowing sales.
Investor skepticism centers on whether hyperscalers can justify spending hundreds of billions of dollars on AI hardware before generative AI proves a durable business model.
Nvidia argues that demand remains strong, telling investors AI accelerator spending could top $1 trillion next year even as custom chips emerge as a competitive threat.
The gap between fast growth and muted share performance leaves Nvidia’s outlook tied to whether 2027 AI spending plans validate the current build-out.