Nvidia Stock Is Struggling in 2026, and This Magnificent Seven Stock Can Make Things Worse for the Artificial Intelligence (AI) Giant. Should Investors Hit the Sell Button?
Meta Platforms is stepping up its in-house chip development to reduce reliance on Nvidia.
Overview
This has been a forgettable year for Nvidia (NASDAQ: NVDA) investors, as the chip giant's 7% gains pale in comparison to the 58% appreciation in the PHLX Semiconductor Sector index so far this year.
Nvidia's underperformance this year has more to do with investor perception than with its financial performance. The company is on track to clock stronger growth in the current fiscal year, and it has a sizable revenue pipeline that should allow it to sustain solid growth in the future as well. However, investors have been looking at other semiconductor stocks rather than Nvidia to capitalize on the AI chip boom, as evidenced by the stock's poor returns in 2026.
Details
It is easy to see why that's the case, especially following a report that suggests Meta Platforms (NASDAQ: META), one of Nvidia's key customers, is going big on its in-house chip development efforts.
Source
Originally published at www.fool.com.