NVIDIA Stock Falls on Profit-Taking Despite Strong AI Growth and $300 Target Outlook

During the US trading session, this NVIDIA stock extended its previous session bearish trend and is still showing losses.

Written by: Arslan Butt • Friday, July 3, 2026 • 2 min read

• Last updated: Friday, July 3, 2026

Quick overview

NVIDIA stock continued its bearish trend, trading at $194.83 with a loss of 1.39% due to profit-taking by large investors.
Concerns about an AI bubble are impacting stock prices, as experts warn that high valuations may not be sustainable without strong earnings.
Despite short-term challenges, NVIDIA reported record revenue of $68.1 billion in Q4, driven by strong demand for AI chips, and is expected to continue growing.
Analysts maintain a positive outlook on NVIDIA, with a target price around $300, citing increasing AI demand and the company's expanding ecosystem.

During the US trading session, this NVIDIA stock extended its previous session bearish trend and is still showing losses. As of now, the stock is trading at $194.83 and is showing losses of 1.39 percent. Many large investors sold their shares to lock in their previous profits.

They wanted to pocket their profits before the holiday weekend. This is called profit taking, which put some pressure on the stock in the short term.

Moreover, the concerns about the AI bubble was seen as another key factor that push the stock down. Some experts say that AI companies prices have become very high, and if companies earnings are not strong, these prices could fall.

NVIDIA Business Is Growing Fast

NVIDIA delivered strong results in its Quarter 4, with revenue of $68.1 billion, which was 73 percent higher than last year. Profit was also at a record level, and Non GAAP earnings per share were $1.62. For the full year, Non-GAAP EPS was $4.77.

Analysts say that this growth is likely to continue in the coming quarters and sales are expected to increase further in 2026 due to strong AI demand.

If talking about the full fiscal year 2026, the company achieved record sales of 215.9 billion dollars, which was 65 percent higher than the previous year. Its data center business generated the highest revenue.

For example, in Q4, the data center business recorded sales of 62.3 billion dollars. The reason for that is the high demand for AI chips from large companies.

NVIDIA Expands Its AI Business

Apart from that, NVIDIA hired a top executive from Microsoft, Nicholas Parker. Hw will start his duty from August 2026 as the Executive Vice President of Worldwide Field Operations and will further strengthen sales and customer relations.

This main aim of this hiring is to handle the huge demand for AI chips so that more customers can receive better service. This will make NVIDIA stronger in the market.

Meanwhile, the company has also released a new tool called the BioNeMo Agent Toolkit for scientists. This tool allows scientists to use AI very easily in medicine, biology, and research. With the help of this, doctors and researchers can make new discoveries much faster. This type of innovation boost investor trust in this company.

Not only this, but twelve new games were introduced to their GeForce NOW cloud gaming service in July 2026, including Monopoly Star Wars. All of these steps show that NVIDIA is not only expanding its chips but also its entire AI ecosystem. As a result of this, the company future growth is expected to be even better.

Experts Still Believe In NVIDIA

Experts still like NVIDIA very much. Many analysts say that the stock target price is around $300. Experts believe that AI demand is real and is increasing every day, and this was proved by the company’s strong sales. Analysts average target is around $301, which is much higher than the current price of $194.

However, some people show some concerns about the high prices and the large AI spending by companies. They think that the stock is already expensive, which increase concerns about the AI bubble. Despite the talk of a bubble, the company actual business is performing well.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.