A broad selloff hit chip stocks on Thursday, pushing many major names sharply lower. Nvidia, however, kept its losses small. The company’s shares fell just 0.8%, trading at $214.75 before the market opened.
The gap between Nvidia and its peers was clear. Broadcom dropped 15% after missing earnings targets. Advanced Micro Devices (AMD) fell 3.6%. While the Energy sector sold off widely, Nvidia held up better than most.
Broadcom’s Weak Earnings Started the Trouble
Broadcom’s latest results came in below what the market expected. That miss sent a wave of selling through chip stocks. Two issues worried investors most: possible competition in Google’s custom chip supply chain and shrinking profit margins.
Investors are once again targeting Broadcom as competitive pressures and shrinking margins take their toll on sentiment in the chip sector. [Credit: Reuters]
Neither of those problems affects Nvidia directly. That gave investors a reason to treat Nvidia differently. The selling pressure on Broadcom and AMD reflected issues specific to those companies, not a collapse in overall AI chip demand.
Nvidia’s Smaller Gains This Year Worked in Its Favor
Nvidia has risen about 15% so far this year through Wednesday’s close. That sounds decent on its own. But it falls well behind the Philadelphia Semiconductor Index, which climbed 96% over the same stretch.
That gap now works to Nvidia’s advantage. Stocks that rise fast tend to fall hard when the mood shifts. Nvidia missed much of that sharp run-up. So it carries less built-up pressure to unwind when things turn negative.
Market watchers have pointed to this pattern before. When a sector runs ahead of its actual results, the correction hits the biggest winners hardest. Nvidia was not in that group this time around.
Nvidia Still Controls the AI Chip Market
Even as competition grows, Nvidia dominates the AI chip space. According to Bloomberg Intelligence, the company’s stake in the AI accelerator market was 86% in 2025. This is unchanged from 2024.
The threat from rivals is real and growing. Custom chip projects at Alphabet and Amazon have made progress. But actual market share losses for Nvidia remain small. The company still has the scale, software tools, and supply relationships that competitors have not yet matched.
Broadcom’s results also served as a reminder. The custom chip competition hurts companies tied to Google’s supply chain more than it affects Nvidia’s wider customer base.
Nvidia CEO Jensen Huang Points to Strong Demand
Nvidia Chief Executive Jensen Huang has spoken clearly about the company’s order pipeline. In a recent statement, Huang said: “The demand for Blackwell is incredible. Countries around the world are recognizing that AI infrastructure is essential.”
Nvidia CEO Jensen Huang. [Credit: Bloomberg]
That confidence comes from the company’s Blackwell chip line, which powers its newest data center products. Orders keep coming in from large cloud companies, national AI programs, and business clients. The current product cycle gives Nvidia strong support for its revenue going forward.
Huang’s words suggest that leadership sees AI infrastructure spending as a long-term shift, not a short burst. That view gives investors a longer timeframe to judge the stock’s worth.
What Nvidia’s Stability Tells Us About the Chip Sector
Nvidia’s ability to limit its losses during this selloff carries a wider message for chip investors. Not every chip company carries the same level of risk. Investors now seem to be drawing sharper lines between AI leaders and companies with narrower customer bases.
The sector still faces tough questions. Valuations are high, custom chip competition is growing, and AI spending could slow. Those factors will keep shaping stock moves as more earnings reports arrive. For now, Nvidia’s steady performance suggests the market still sees it as the most reliable major name in AI chips.
The company’s next earnings report will be a key test. Analysts have noted that Nvidia has built a reputation for strong results each quarter. Any miss, even a small one, could quickly change the mood. The chip sector stays unpredictable, and Nvidia’s calm showing this time offers no guarantees about what comes next.
Also Read: Data Centers Could Push Power Bills Up 57% Without Green Energy Growth
FAQS
Q1. Why did Nvidia underperform other chip stocks?
A1. Nvidia’s stocks did not gain as much as otherchip stocks earlier in the year, so it had less ground to give up in the selloff.
Q2. What prompted the selloff in the chip sector?
A2. Profit margins and competition pressures in Google custom chip supply chain prompted selloff after Broadcom results disappoint.
Q3. Is Nvidia still king of the AI chip domain?
A3. Yes. Nvidia had an 86% share in AI accelerators market in 2025, same as last year.
Disclaimer
The information provided is not trading advice, Colitco and it’s author holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Sources
https://www.barrons.com/articles/nvidia-stock-price-broadcom-392a3598
https://finance.yahoo.com/markets/stocks/articles/nvidia-facing-more-competition-spooking-110
Last modified: June 5, 2026
