Nvidia Lags Chip Index by 48 Points Ahead of Q3 Earnings

3 articles · Updated · currently.att.yahoo.com · Aug 25

Nvidia shares are up about 12% in 2026, badly trailing the PHLX Semiconductor Index's gain of more than 60% even as the company heads into fiscal third-quarter results later this week.
The gap reflects investor bets that Nvidia's breakneck expansion will slow, with trailing 12-month revenue already above $250 billion and the market no longer rewarding repeated earnings beats.
Competition is also sharpening from AMD and custom AI accelerators built by hyperscalers, putting fresh focus on Nvidia's order flow and whether pricing power can hold.
At roughly 25 times forward earnings, Nvidia still looks inexpensive relative to its 74% gross margin, 85% year-over-year revenue growth and reported $1 trillion order book across 2026 and 2027.
The earnings report is likely to test whether the stock's muted performance reflects temporary skepticism or deeper concerns about how long AI-driven growth can last.