NVIDIA Stock Rises as Strong AI Demand Offsets Valuation and Supply Concerns

During the European trading session on Wenseday, the NVIDIA Corp stock managed to gain some positive momentum and showed some modest gains..

Written by: Arslan Butt • Wednesday, July 8, 2026 • 2 min read

• Last updated: Wednesday, July 8, 2026

Quick overview

NVIDIA Corp stock gained 0.71 percent during the European trading session but remains below its all-time high of $235.
The company's sluggish performance is attributed to high stock prices relative to earnings and supply issues with new chips.
Despite challenges, NVIDIA reported record sales of $81.6 billion in Q1 2026, driven by strong demand for AI chips.
NVIDIA announced an $80 billion share buyback plan and increased dividends, while experts remain optimistic about its long-term growth potential.

During the European trading session on Wenseday, the NVIDIA Corp stock managed to gain some positive momentum and showed some modest gains of 0.71 percent at the 196.93 level. Despite these gains, the stock is still below its previous all time high of $235. Looking at the bigger picture, the NVIDIA stock has been showing sluggish performance in the past month.

Moreover, the reason for its sluggish performance is that people think the company’s stock price is already too high compared to its earnings. Besides this, the company is also facing supply issues with its new chips, which were seen as another negative factor for the stock price.

Apart from this, the competition is also increasing in the market day by day, which makes investors cautious about placing any strong position.

Nvidia Shows Strong Growth With Record Results

Despite the stock of the company showing weak performance, the company recorded 81.6 billion dollars in sales during the first three months of 2026, which is 85 percent higher than last year. This is a very big achievement for the company.

Meanwhile, the companys highest revenue came from the data center business, which was 75.2 billion dollars and increased by 92 percent. GAAP net profit was also a record 58.3 billion dollars, which was 211 percent higher than last year. Adjusted earnings per share were $1.87, which was also higher than market expectations.

Moreover, the total revenue in the full year 2026 was 216 billion dollars. Operating cash flow was 50.3 billion dollars, which is much higher than last year. Looking forward, investors are now keeping thier eyes on the next earnings report, which is scheduled to be released on August 26.

Many analysts are expecting 91 billion dollars in revenue, which will also be higher than the previous quarter. In fact, the company itself has also given the same revenue target.

All of this became possible because the demand for AI chips is growing fast, due to which the production of NVIDIA’s Blackwell chips is increasing at a good speed. As a result, millions of units of NVIDIA’s Blackwell chip are being produced every month.

Big companies like Microsoft, Google, and Meta are placing new orders every day, which was seen as one of the key factor behind this company growth.

On the other side, the company also announced an 80 billion dollars share buyback plan and increased the dividend from $0.01 to $0.25 per share, which is good news for investors.

Nvidia Faces Problems But Still Looks Strong

In contrast to this, Nvidia is not launching any new gaming graphics card this year, which is the first time in 30 years. This is happening due to the major shortage of memory chips. This was seen as negative news for this company. Not only this, but the sales in China have become almost zero due to the US rules.

Despite this, experts say that Nvidia will keep growing as the demand for AI is very strong. Looking at these all things, Boss Jensen Huang says that the current drop in the stock price is a good time to buy because the AI growth has only just started.

NVIDIA is one of the biggest companies in the world, with a market value of around $5 trillion. It is the leader in AI chips, and 25 percent growth is expected next year as well. In the long term, it is in a very strong position.

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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.