Nvidia Surprise Keyword Entry: Fundamentals Check Amid 18% Correction

Background of Nvidia Surprise Keyword: Reaffirming Fundamentals

The keyword Nvidia surprise is gaining traction again in the stock market. This is primarily because the lingering impact of the massive earnings surprise announced on May 20, 2026—which saw a record revenue of $81.62 billion driven by explosive data center growth—continues to influence the market. Investors appear to be searching for this keyword to confirm the robust fundamentals of AI semiconductor demand amid short-term stock price volatility.

18% Correction from the Peak: Causes of the Gap Between Earnings and Stock Price

Despite the strong post-earnings rally that pushed the stock to an all-time high of around $235 in mid-May, Nvidia's shares are trading at approximately $192 as of June 29 and 30, 2026, reflecting an 18% correction from the peak (Source: Tikr and major financial data).

The primary reasons for this divergence between record earnings and recent stock performance include:

• Concerns over Peak AI Investment: Market anxiety is growing regarding whether the capital expenditures of major hyperscalers have reached their zenith.

Transition to Next-Generation Chips: Market focus has shifted from current product sales to the upcoming next-generation Vera Rubin architecture, slated for mass production in the second half of the year.

Profit-Taking: Institutional investors are realizing profits following the steep upward trajectory observed since the beginning of the year.

Positive Institutional Outlook and Future Investment Strategies

Despite the short-term correction, major financial institutions maintain a positive outlook on Nvidia's mid-to-long-term growth trajectory. On June 29, 2026, global investment banks, including Bernstein, reaffirmed an 'Outperform' rating on the stock (Source: GuruFocus, etc.), providing some rebound momentum. Moving forward, investors should monitor the digestion of short-term profit-taking volumes while focusing on the specific supply schedule of the Vera Rubin platform in the latter half of the year and the sustained infrastructure investments by key clients as core indicators.