Nvidia stock (NVDA) edged higher on Monday but continued to lag the broader semiconductor rally as investors remained cautious about the company’s ability to capture the next wave of artificial intelligence infrastructure spending.
The stock rose 0.5% to $195.86 in early trading, well behind the wider chip sector.
The iShares Semiconductor ETF gained 4.3%, led by a 10% jump in Western Digital and an 8% advance in Teradyne.
Advanced Micro Devices climbed about 10%, while Intel gained roughly 6%. Marvell Technology and Oracle also traded higher.
Nvidia continues to trail semiconductor peers
Despite remaining the dominant supplier of AI graphics processors, Nvidia has struggled to keep pace with other semiconductor stocks in recent months.
Investor attention has increasingly shifted toward memory chips, central processing units, semiconductor equipment makers, and custom AI silicon, with many market participants questioning whether future artificial intelligence spending will be distributed across a broader range of companies rather than concentrated primarily on Nvidia.
That rotation has left Nvidia underperforming many of its peers even as enthusiasm for AI infrastructure remains strong across the semiconductor sector.
Report points to Kyber delay
Adding to investor caution, research firm SemiAnalysis reported that Nvidia’s next-generation Kyber rack-scale architecture has been delayed by more than a year.
According to the report, Kyber, which is designed to house Nvidia’s Rubin Ultra chips, is now expected to launch in 2028 instead of 2027.
The rack-scale system is intended to combine 144 of Nvidia’s most advanced chips into a single computing system for artificial intelligence workloads.
SemiAnalysis said the delay stems from manufacturing challenges involving a critical printed circuit board used in the architecture.
“Kyber NVL144 rack architecture has been delayed to 2028 as the PCB midplane remains challenging from a manufacturability standpoint,” the research firm said.
The reported delay represents the latest in a series of challenges surrounding Nvidia’s next-generation product roadmap, although the company has not commented on the report.
Goldman Sachs remains bullish
Despite Nvidia’s recent underperformance, Goldman Sachs reiterated its Buy rating on the stock and maintained a $285 price target.
The investment bank said investors are likely to focus on several key issues in upcoming quarters, including potential upside to Nvidia’s previously outlined $1 trillion data center opportunity, growth in the company’s server CPU business driven by agentic AI, competitive dynamics across the AI infrastructure market, and gross margin trends as component costs increase.
Goldman Sachs said it expects Nvidia to deliver a “beat-and-raise” quarter, supported by favorable industry supply and demand trends.
However, the firm also acknowledged that expectations remain elevated and that the threshold for meaningful stock outperformance is high.
According to Goldman Sachs, Nvidia’s valuation now trades at a meaningful discount relative to its historical levels following the stock’s recent lagging performance.
The firm believes the shares could command a higher valuation multiple if hyperscalers demonstrate improving profitability while continuing to invest heavily in AI infrastructure, enterprise adoption of agentic AI accelerates, and investors gain greater visibility into deployments beyond the company’s traditional customer base.
Goldman Sachs also raised its earnings estimates by roughly 12% on average, with its updated calendar-year 2026 and 2027 forecasts standing 14% and 34%, respectively, above broader Wall Street expectations.
The bank said it expects further earnings estimate revisions and multiple expansion to support Nvidia shares over the next 12 months, noting that the company has still generated a 78% return over the past year while delivering revenue growth of 65%, despite its recent underperformance relative to the broader semiconductor sector.
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