Semiconductor stocks are now feeling the effects of the broader technology selloff. On Tuesday, NVIDIA dropped 2.8% in premarket trading to $202.87. Advanced Micro Devices fell 5.6%, and Broadcom was down 3.8% as investors moved away from high-growth tech stocks. Here’s a look at what’s behind these moves and why Nvidia is performing better than its competitors, even though it has led the sector lower so far this year.
This drop is part of a larger slump in the technology sector, not just an issue for chip companies. On Tuesday, NVIDIA held up better than AMD and Broadcom, which both saw bigger losses. This trend has continued throughout 2026. NVIDIA’s stock has moved less dramatically than other chipmakers, as investors have shifted their focus from its graphics chips to central processing units and memory chips. Companies like Intel and Micron have attracted more attention from traders this year.
According to Dow Jones Market Data, NVIDIA has been the weakest performer in the 30-stock PHLX Semiconductor Index in 2026, even though it is up 12% for the year through Monday. This underperformance relative to its peers is due to shifting interest across segments of the AI hardware market, not to worsening business fundamentals at Nvidia.
Nvidia’s stock has stayed below about $226, which analysts recently saw as an undervalued price based on future earnings. This gap has grown as investors continue to shift away from the sector.
