Nvidia’s stock closed at €172.50 on Tuesday, steadying after a volatile session that forced the chipmaker to publicly refute speculation about a delay to its next-generation AI platform, even as unrelated margin calls in South Korea added to selling pressure across the technology sector. The closing price sits roughly 15% below the 52-week high of €202.50, and the shares have eked out a gain of just over 7% year to date — a modest performance for a company that has dominated the artificial intelligence narrative.
The turbulence stems from conflicting signals around the Kyber NVL144 rack system, which follows the Vera Rubin architecture and bundles multiple graphics processors into a unified cluster for complex AI training. Reports over the weekend claimed that technical hurdles with the motherboard had pushed the launch from 2027 into 2028. Nvidia issued an unequivocal denial on Monday, stating the original timeline
Yet the stock’s stabilization owes as much to external factors as to Nvidia’s reassurance. A liquidity crisis in South Korea sent the KOSPI index plunging nearly 5% on Tuesday, triggering what traders call a margin cascade. Brokers forced investors to liquidate highly liquid holdings — including Nvidia shares — to meet margin calls. Even robust earnings from Samsung failed to lift the chip sector in that environment. The sell-off was mechanical, not a verdict on Nvidia’s business prospects.
Adding to the narrative complexity, Chinese AI start-up DeepSeek announced it is developing its own chip for inference, aiming to reduce reliance on Nvidia’s hardware. That news nudged Nvidia’s shares slightly lower in pre-market trading on Tuesday. Although DeepSeek’s efforts remain nascent, they underscore a broader trend: big tech companies and startups alike are increasingly designing custom silicon. Nvidia’s margins, however, remain above 50%, and the company still controls an estimated 80% of the AI chip market — a moat reinforced by its tightly integrated software ecosystem.
Should investors sell immediately? Or is it worth buying Nvidia?
Analysts at Goldman Sachs consider the current valuation attractive. The stock trades at a forward price-to-earnings ratio of 21.7, well below its five-year historical average. That discount reflects, in part, the massive capital expenditure plans of hyperscalers. Microsoft, Alphabet, Meta, and Amazon are expected to lift their combined infrastructure spending from $650 billion in 2026 to $1 trillion the following year. Nvidia’s data-center segment already accounts for nearly 90% of total revenue, which surged 65% in fiscal 2026. The demand pipeline through 2027 looks secure as long as the Kyber platform ships on schedule.
Beyond terrestrial data centers, Nvidia is reaching into orbit. The company supplies chips for SpaceX’s orbital computing facilities — over 220,000 Nvidia processors are reportedly in use across SpaceX’s infrastructure. The Vera Rubin Space-1 module exemplifies this push. Management has also been promoting the concept of national AI factories, with France, India, and Brazil already pursuing projects to build dedicated AI infrastructure.
Technically, the stock sits in a neutral zone. The relative strength index hovers near 45, and the price is about 5% below its 50-day moving average, though comfortably above the 200-day line at €164.41. The broader uptrend remains intact, supported by a market capitalization exceeding €4 trillion. The average analyst price target stands at roughly €264 — a substantial premium that reflects continued conviction in Nvidia’s long-term trajectory, even as short-term crosscurrents test investor nerves.
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