Nvidia stock (NVDA) edged lower on Wednesday as investors appeared to take profits across semiconductor stocks following a record-breaking first half for the sector.
Shares of Nvidia fell 2.15% to $195.79 in early trading.
The decline came after the stock gained 2.6% on Tuesday and reclaimed the $200 level for the first time in several sessions.
Nvidia remains down nearly 7% over the past month, despite recovering from recent lows.
The broader technology sector was also under pressure. The Nasdaq Composite fell 0.7%, while the S&P 500 lost 0.3%. The Dow Jones Industrial Average slipped 27 points.
Chip stocks pause after historic first half
The weakness comes after a remarkable run for semiconductor stocks during the first six months of 2026.
The VanEck Semiconductor ETF gained over 70% in the first half of the year, marking the strongest first-half performance since the fund’s launch in 2000.
Many of the sector’s biggest winners experienced sharp pullbacks on Wednesday.
Micron fell 6%, though the memory-chip maker remains up roughly 270% year to date.
Sandisk dropped 8% after surging more than 850% during the first half.
Broadcom declined about 1%, while AMD slipped around 4%.
The sector’s gains have been driven by expanding demand for artificial intelligence infrastructure, but investor enthusiasm has increasingly spread beyond graphics processing units to other parts of the semiconductor ecosystem.
Investors shift toward other AI beneficiaries
While Nvidia remains the dominant supplier of AI accelerators, the market narrative has broadened significantly during 2026.
The first phase of the AI boom centered largely on graphics processing units, where Nvidia established a commanding position.
More recently, investors have focused on areas such as memory chips, central processing units, and semiconductor manufacturing equipment.
Companies, including Micron, have benefited from supply constraints in memory markets, while Intel and Advanced Micro Devices have gained from growing expectations that agentic AI systems will require significantly more CPU capacity alongside GPUs.
The shift has contributed to Nvidia’s relative underperformance despite continued strength in its underlying business.
According to CNBC’s Jim Cramer, Nvidia’s stock may have become a source of funds for investors seeking exposure to other areas of the AI supply chain that appear earlier in their growth cycles.
Nvidia shares rose roughly 1,000% between the launch of ChatGPT in late 2022 and the end of 2025, dramatically outperforming broader markets.
That strong performance has left some investors looking elsewhere for the next phase of AI-related gains.
Burry renews bearish semiconductor bet
Adding to the debate around semiconductor valuations, investor Michael Burry disclosed a new round of bearish positions targeting the sector.
In a Substack post published Tuesday, Burry said he refreshed his wager against the iShares Semiconductor ETF by purchasing put options expiring in March 2027.
The ETF includes major chipmakers such as Nvidia, AMD, Broadcom, Intel, Micron, and Applied Materials.
Burry argued that semiconductor stocks have become significantly extended after the AI-driven rally.
He pointed to the Philadelphia Semiconductor Index trading at one of its most stretched levels relative to its 200-day moving average.
“The SOXX itself is a pure form of overvaluation in an index, a form that is rarely seen and never so easily recognized as such,” Burry wrote.
Investor concerns around Nvidia extend beyond valuation.
As AI spending continues to expand, competition across the semiconductor industry has intensified.
Memory suppliers, CPU manufacturers, custom-chip developers, and equipment makers are all capturing larger portions of AI-related investment budgets.
Nvidia remains best known for its graphics processors, but investors are increasingly evaluating whether future AI infrastructure spending will be distributed more broadly across the industry.
The post Why Nvidia stock is slipping over 2% today appeared first on Invezz