Shares of NVIDIA Corporation gained on Wednesday, climbing as much as 1.67% before erasing some of the gains to trade about 0.6% higher.
The gain came after the chipmaker closed the first quarter on a stronger note, even though it recorded its second consecutive quarterly decline.
The stock fell 6.5% over the past three months through Tuesday’s close, marking its longest losing streak since late 2022.
This earlier pullback preceded the launch of ChatGPT, which sparked the current boom in artificial intelligence and fueled Nvidia’s rise to become a dominant force in AI hardware.
Despite a 5.6% jump on Tuesday and modest gains on Wednesday, Nvidia shares remain below levels above $190 seen in late January.
The decline was attributed to a broader market rotation linked to geopolitical tensions involving Iran and growing questions about the sustainability of AI-related spending.
Historical trends suggest a rebound
While recent performance has been under pressure, historical data suggests a potential rebound.
Over the past decade, Nvidia has averaged a gain of about 12% the month following a string of losses of two months or more, according to Dow Jones Market Data.
This period coincides with Nvidia’s transformation from a gaming-focused chipmaker to the leading supplier of processors for AI.
However, the company now faces an evolving landscape as the next phase of AI development takes shape.
“The stock’s decline is probably more due to panic than the collapse of the thesis. Until the reverse is proven, Nvidia remains the leader, but the burden of proof has changed,” said Bill Birmingham, managing director of REX Financial in an article in Barron’s. “The question is no longer whether he can dominate the coaching boom ; The question is whether it can remain central as AI spending expands to inference, orchestration and more personalized computing capabilities.â€
Data Center Segment Supports Growth
Nvidia’s data center segment remains its main growth engine.
The unit generated $62.31 billion in revenue in the fourth quarter of fiscal 2026, accounting for 91.5% of total sales. This corresponds to an increase of 75% year-on-year and sequential growth of 22%.
Demand was driven by accelerated computing, generative AI and large-scale model training among cloud providers and enterprise customers. The rollout of the GB300 platform and broader adoption of networking technologies such as NVLink and Spectrum-X further supported the momentum.
Looking ahead, Nvidia expects continued strength in Blackwell deliveries and increased orders related to cloud, sovereign AI, and enterprise AI initiatives. Emerging trends such as agentive AI, long-context workloads, and advanced inference systems are also expected to support long-term demand.
Strategic investments expand the AI ecosystem
Alongside organic growth, Nvidia is investing heavily to secure its position throughout the AI value chain.
The company has committed at least $18 billion in investments in listed companies over the past six months.
Recent moves include a $2 billion investment in Marvell Technology to improve connectivity within its AI infrastructure via NVLink. It also made a $2 billion investment in Nebius to support the deployment of large-scale AI systems by 2030.
Other investments cover critical components of the supply chain, including stakes in Lumentum and Coherent for optical technologies, as well as a $2 billion position in CoreWeave to expand AI data center capacity.
Nvidia has also deepened its partnerships with Intel and Synopsys to strengthen its chip design capabilities.
Beyond hardware, the company secures energy resources and supports private AI companies such as OpenAI, underscoring its strategy of locking in infrastructure and capacity as demand for AI grows.
