The Biggest Surprise About Nvidia's AI Conference: It Didn't Give the Stock a Boost

Nvidia (NVDA 2.77%) recently held its global artificial intelligence (AI) conference, highlighting all the big trends and opportunities in tech. One of the most newsworthy items was CEO Jensen Huang forecasting that orders related to Blackwell and the new Vera Rubin platform will top a staggering $1 trillion by 2027.

There was no shortage of encouraging growth prospects and opportunities for Nvidia investors to get excited about, and yet, the stock hasn’t been able to get out of its tailspin. As of Tuesday’s close, it was still down around 4% since the start of the year. Could this be a sign of trouble for the AI stock?

Image source: Getty Images.

This may be symptomatic of a broader pullback in tech

Although Nvidia’s stock price isn’t exactly taking off this year, it’s also not alone. Many other “Magnificent Seven” stocks are also struggling, and even doing worse. Shares of social media giant Meta Platforms are down 9%, while electric vehicle maker Tesla has seen its valuation fall by 13%. And the Technology Select Sector SPDR ETF is down close to 5%.

The one trend that is clear in 2026 is that investors are pivoting toward safer stocks and away from tech. Dividend stocks, gold, silver, and other assets have been in higher demand this year. Whether it’s ongoing concern about what will happen with AI and doubts about whether it will indeed pay off for companies, or if it’s simply just fatigue from AI investing themes, investors have been backing away from tech stocks of late.

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NASDAQ: NVDA

Nvidia

Today’s Change

(-2.77%) $-4.94

Current Price

$173.74

Key Data Points

Market Cap

$4.3T

Day’s Range

$173.04 - $176.52

52wk Range

$86.62 - $212.19

Volume

3.5M

Avg Vol

176M

Gross Margin

71.07%

Dividend Yield

0.02%

Nvidia’s valuation may already price in a lot of future growth

Another issue to consider is whether Nvidia’s stock price is already so high that investors have already priced in a lot of future growth. Thus, news of a strong backlog of orders may not be enough to move an already expensive stock. At around $4.4 trillion, Nvidia remains the most valuable company in the world, even with its decline this year.

It trades at 36 times its trailing earnings, which isn’t exactly cheap. And if investors are having doubts about AI, they may not be willing to pay more of a premium for the business.

Whether you think Nvidia is a good buy today depends on whether you think AI spending will remain high and whether the company will continue to dominate the chip market. There are many other companies developing their own chips these days, and competition may intensify in the future, so there is a bit of risk here. However, as a long-term investment, I think Nvidia’s stock could still be a good buy given the plentiful growth opportunities in AI.