Do Investors Underestimate Nvidia? CEO Jensen Huang Thinks So

Key Takeaways

• Shares of Nvidia plunged Thursday, despite a strong earnings report.
• The stock has had a tough start to the year amid uncertainty about the trajectory of the AI boom.
• CEO Jensen Huang told CNBC that he believes investors may be missing how large the computing industry could become, and how much Nvidia is set to grow with it.

Investors are underestimating Nvidia, according to its CEO.

Shares of the chipmaker fell more than 5% Thursday, even though the AI chipmaker delivered a blockbuster earnings report and strong outlook the night before.

The drop made Nvidia (NVDA) the worst-performing stock in the Dow Jones Industrial Average Thursday, and one of the biggest decliners in the Nasdaq and S&P 500. It also dragged the stock, which has had a tough start to the year amid uncertainty about the trajectory of the AI boom, back into negative territory for 2026.

CEO Jensen Huang told CNBC in a televised interview following the company’s earnings call that he believes investors may be missing how large the computing industry could become, and how much Nvidia is set to grow with it.

Why This Matters to Investors

Thursday’s stock losses could underscore weak sentiment around Nvidia and other previously high-flying stocks tied to AI, amid worries about the sustainability of its growth and the technology’s impact.

Ahead of Wednesday night’s results, several Wall Street analysts warned Nvidia would face a particularly high bar to impress, amid sky-high expectations for sales to its Big Tech customers and broader uncertainty around the trajectory of the AI boom.

However, the market’s negative reaction still took some analysts by surprise, suggesting skepticism around the AI trade and Nvidia’s future in it could run deeper than they anticipated.

Huang said he expects investors will change their tune back in Nvidia’s favor, eventually. “The market can’t hold us back forever,” Huang said.

“The reason for that is because we’re going to keep on growing,” he said. “No matter how you look at it, Nvidia’s leadership is pulling ahead every single day.”

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With Thursday’s losses, Nvidia shares have dropped roughly 12% from their late October highs.

Other semiconductor stocks and AI-related stocks tumbled Thursday along with Nvidia, widely seen as a bellwether for broader AI demand. The PHLX Semiconductor Sector Index (SOX) dropped 3%.

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