Nvidia stock is sagging. Here's what's behind the negative short-term trend.

Nvidia's (NVDA) stock is enduring an early summer swoon.

The insight: Nvidia shares have now underperformed the S&P 500 (^GSPC) for six straight trading days, according to Yahoo Finance AlphaSpace data. This marks the longest stretch of relative underperformance since September 2025.

The AI darling has had a mixed performance in the second quarter, which ends today.

Nvidia hit an all-time high closing price of $235.47 on May 14, but the stock has pulled back meaningfully since then, by about 23%.

What's behind the move: Nvidia's recent underperformance relative to the S&P 500 has been primarily driven by an institutional sector rotation out of high-flying AI hardware stocks and into specific subsectors such as memory chips.

Wall Street is also growing increasingly impatient with Big Tech's astronomical capital expenditures on artificial intelligence, which are projected to balloon 70% to more than $700 billion this year.

What's driving the sector rotation away from Nvidia?

What could be Nvidia's next positive catalyst?

Why has Nvidia underperformed the S&P 500 recently?

How are Big Tech AI expenditures affecting sentiment?

Factor in concerns about a Fed rate hike later th

Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/stocks/article/nvidia-stock-is-sagging-heres-whats-behind-the-negative-short-term-trend-120447121.html)