NVDA Stock Is Down 11.33% in 4 weeks, But Nvidia Just Crossed a $5.5 Trillion Market Cap 

NVDA stock has fallen 11.33% over the past four weeks, yet Nvidia reached a historic milestone by crossing a $5.5 trillion market capitalization in early July 2026. That contrast has drawn plenty of attention on Wall Street. Some investors have taken profits after Nvidia’s strong rally, while others remain focused on the company’s long-term AI business. A falling share price alongside a record market value may seem unusual, but both can happen at the same time. So, why is NVDA stock pulling back, and what should investors keep an eye on next?

Why Is NVDA Stock Down Despite Nvidia’s Record Market Value?

Why has NVDA stock fallen in recent weeks?

NVDA stock has declined about 11.33% over the past four weeks, even though Nvidia continues to lead the AI chip market. The recent weakness appears to be driven largely by profit-taking after months of strong gains rather than any major change in the company’s business.

Some investors have also rotated into other technology stocks as AI-related valuations remain high. At the same time, expectations heading into Nvidia’s next earnings report have added another layer of short-term volatility.

Why is Nvidia’s market value still making history?

Even with the recent decline, Nvidia became the first company to briefly exceed a $5.5 trillion market capitalization in May 2026. Investors continue to place a high value on the company’s position in artificial intelligence. It’s also worth remembering that market capitalization and share price don’t always move in the same direction over short periods. Daily trading often reflects investor sentiment, while market value is tied to the company’s overall size and long-term expectations.

What Is Driving Nvidia’s Historic $5.5 Trillion Market Cap?

How is AI demand supporting Nvidia’s growth?

Demand for Nvidia’s Blackwell AI platform continues to exceed available supply. Large cloud providers, businesses, and governments are investing heavily in AI infrastructure, increasing the need for high-performance GPUs. Nvidia remains at the center of that spending. The company has continued to grow revenue at a rapid pace, helped by strong demand across its data center business and its leadership in AI computing.

Do Nvidia’s financials justify its valuation?

Nvidia’s recent financial results continue to support investor confidence. Revenue and earnings have grown sharply, driven mainly by the company’s data center segment. Many Wall Street analysts still rate the stock as a Strong Buy, with an average price target near $299, suggesting further upside from current levels.

Meyka stock details and forecast

• Rating: A
• 12-month target: $244
• Wall Street consensus target: Around $304
• Sentiment: Neutral with a positive long-term outlook

Is the Recent NVDA Stock Pullback a Buying Opportunity?

What are the bullish arguments?

Many investors see the recent decline as a normal correction after a strong run rather than the beginning of a lasting downturn. Nvidia continues to lead the AI hardware, networking, and software markets. 

Spending by hyperscale cloud companies remains healthy, and shipments of Blackwell chips are expanding. Investors can also use an AI stock analysis tool to compare valuation, momentum, and analyst forecasts before making investment decisions.

What risks should investors watch?

Valuation is still the biggest concern. Nvidia will need to keep delivering strong earnings to support its premium pricing. Investors should also watch export restrictions, growing competition from AMD and custom AI chips, and any signs that AI spending is slowing. 

According to Meyka, the technical picture remains positive overall, although resistance near previous highs could limit gains until the company reports its next earnings.

Supporting analyst insights

Most leading Wall Street firms continue to maintain Buy or Strong Buy ratings on Nvidia. Analysts generally expect demand for AI infrastructure to remain strong, supporting the company’s growth over the coming quarters.

What Investors Should Watch Next?

Investors should pay close attention to Nvidia’s next earnings report, Blackwell production updates, AI infrastructure spending, and growth in data center revenue. Management’s guidance will likely influence near-term market sentiment. Federal Reserve policy, semiconductor demand, and broader market conditions are also likely to affect NVDA stock during the second half of 2026.

Conclusion

The recent drop in NVDA stock has not changed Nvidia’s position as one of the biggest companies benefiting from AI demand. Its move above a $5.5 trillion market capitalization shows that many investors still expect strong long-term growth. 

Even so, valuation, competition, and policy risks remain factors to watch. The company’s next earnings report and continued demand for AI chips will likely have the biggest influence on where the stock moves next.

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.