Nvidia shares fell 2.5% to $167.03 this week, marking a modest pullback as investors rotated out of AI-heavy semiconductor stocks. Despite strong long-term fundamentals, the dip follows comments from CEO Jensen Huang downplaying the near-term impact of silicon photonics—a much-hyped next-gen tech.
Sector-wide selloff in chip stocks
- Nvidia (NVDA): ↓ 2.5%
- Advanced Micro Devices (AMD): ↓ 1.45%
- Broadcom (AVGO): ↓ 3.34%
- Nasdaq Composite: ↓ 0.39%
- S&P 500: ↑ 0.06%
The drop in Nvidia’s share price, while notable, came on average volume—183 million shares traded versus the 200 million average—indicating profit-taking rather than panic selling.
Investors appear to be rebalancing portfolios after Nvidia’s post-earnings rally, with the entire chip sector facing pressure amid uncertainties around U.S.-China export policies.
Jensen Huang: Photonics still years away
During a recent media briefing, Nvidia CEO Jensen Huang poured cold water on the notion that silicon photonics—a promising new data transmission method—would soon replace traditional copper interconnects.
“We should stay with copper for as long as we can,” Huang told reporters. “Photonics is still several years away.”
Nvidia has been investing in photonic hardware, including Spectrum-X switches and the COUPE packaging system co-developed with TSMC. These future products aim to triple power efficiency and boost signal integrity in AI networking.
Still, Huang’s comments suggest Nvidia is not rushing to transition away from copper in current-generation infrastructure.
What this means for Nvidia’s stock price
Nvidia remains in a strong long-term uptrend, trading just below its 52-week high of $174.25. Analysts and market watchers view the current dip as a healthy consolidation amid sector volatility.
While the photonics delay may cool short-term enthusiasm, Nvidia’s leadership in AI chips, datacenter networking, and GPU innovation remains intact.
Key takeaways for investors
- No fundamental shift: This dip reflects temporary repositioning, not a breakdown in Nvidia’s story
- Photonics is coming—but not yet: Copper tech will dominate Nvidia’s roadmap through at least 2026
- Watch for catalysts: Future earnings, export policy updates, and product rollouts will likely drive the next leg up