4 reasons Nvidia stock is lagging

Nvidia (NVDA) stock has not experienced its usual year, as it has fallen in response to earnings in six of the past eight quarters, according to Yahoo Finance AlphaSpace analysis. Despite Nvidia's stock being up 14% year to date, the S&P 500 is up 12%. The stock is also not outperforming other key players in the AI chip supply chain, with Micron (MU) shares gaining 225%, Intel (INTC) up 138%, and AMD (AMD) up 124%.

Raymond James analyst Simon Leopold lists four reasons for Nvidia's lagging performance. First, with a market cap of $5.2 trillion, there may be limited appetite for further exposure to Nvidia. Second, there is a growing fear that the AI boom could turn into a bust. Third, decelerating growth is likely to become more apparent as Nvidia's rapid growth in the past two years may not continue. Lastly, Nvidia's growth and margins may peak soon due to its extraordinary growth rate over the past two years.