NVIDIA Stock Rises as Strong AI Demand Offsets Valuation and Supply Concerns
During the European trading session on Wednesday, July 8, 2026, NVIDIA Corp. stock gained 0.71 percent to trade at $196.93. Despite the modest advance, shares remain below their all-time high of $235 and have exhibited sluggish momentum over the past month. This underperformance reflects investor concerns regarding the stock’s elevated valuation relative to earnings, alongside ongoing supply constraints for its next-generation chips. Intensifying market competition has further prompted investors to exercise caution.
Contrary to its recent price action, NVIDIA delivered record financial results for the first quarter of 2026. The company reported total sales of $81.6 billion, an 85 percent year-over-year increase. Revenue from its data center segment led at $75.2 billion, up 92 percent. GAAP net profit reached a record $58.3 billion, surging 211 percent compared to the prior year, while adjusted earnings per share came in at $1.87, surpassing market expectations. For the full year 2026, NVIDIA projects total revenue of $216 billion, supported by operating cash flow of $50.3 billion, significantly higher than last year’s figures.
This robust performance was driven by rapidly accelerating demand for artificial intelligence chips, enabling NVIDIA to scale production of its Blackwell architecture at a substantial pace. Millions of Blackwell units are now being manufactured monthly, fueled by continuous new orders from major technology firms including Microsoft, Google, and Meta. Looking ahead, NVIDIA will report its next earnings update on August 26. Analysts are forecasting revenue of $91 billion for the upcoming quarter, a figure that aligns with the company’s own guidance.
In a move to reward shareholders, NVIDIA announced an $80 billion share repurchase program and raised its quarterly dividend from $0.01 to $0.25 per share. However, the company faces notable headwinds. For the first time in three decades, NVIDIA will not launch a new gaming graphics card this year, a decision attributed to a severe shortage of memory chips. Furthermore, U.S. export restrictions have reduced the company’s sales in China to nearly zero.
Despite these challenges, industry experts maintain confidence in NVIDIA’s trajectory, citing sustained strength in AI demand. Jensen Huang stated, “the current drop in the stock price is a good time to buy because the AI growth has only just started.” As one of the world’s largest corporations with a market capitalization of approximately $5 trillion, NVIDIA remains the dominant force in AI semiconductors. The company is projected to achieve another 25 percent growth rate next year, reinforcing its long-term competitive positioning.
Arslan Ali Butt serves as the Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto). Holding an MBA in Behavioral Finance and actively pursuing a Ph.D., he brings extensive expertise in market dynamics. His career includes a senior analyst role at a leading brokerage firm, complemented by experience as a day trader, educator, and public speaker. His analytical work on cryptocurrency and foreign exchange markets has been featured in prominent financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch.
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