Prediction: After Losing Over $1 Trillion in Market Cap This Year, Nvidia Stock Will Rebound in Epic Fashion. Here's Why.
Nvidia is one of the worst-performing stocks among megacap tech so far this year.
For much of the past two years, the S&P 500 and Nasdaq Composite were fueled to record levels thanks to a small collective of megacap artificial intelligence (AI) stocks. Known as the "Magnificent Seven," Microsoft, Apple, Amazon, Alphabet, Meta Platforms, Tesla, and Nvidia (NASDAQ: NVDA) have largely been a good group of shares to own for the last couple of years.
However, sentiment around these AI leaders has shifted significantly in 2025. As of this writing, each of the Magnificent Seven stocks has seen a negative return on the year. Nvidia's shares alone are down some 27% this year. Back in January, the chipmaker's market capitalization reached an all-time high of $3.7 trillion. Today, its valuation has cratered to $2.4 trillion.
After losing over $1 trillion in market cap, is there any hope left for Nvidia investors? I think the answer is a resounding "yes." Let's dig into what caused Nvidia stock to spiral, and explore what tailwinds could reignite some life back into the semiconductor darling.
