Is demand for NVIDIA chips still strong?

Yes, demand for NVIDIA's AI chips remains robust, supporting the company's fundamentals.

Did other chip stocks also decline?

Yes, stocks like Broadcom and Marvell Technology also fell, indicating sector-wide weakness.

NVIDIA Falls 6.6% in a Month: Should You Hold or Exit?

Q: What is NVIDIA's forward P/E?

The forward P/E has contracted, making the stock relatively cheaper than in previous periods.

NVIDIA (NVDA) dropped 6.6% over the past month amid chip-sector weakness. However, strong AI demand, robust cash flow, and a lower forward P/E suggest the stock may still be worth holding, according to Zacks analysis.

July 6, 2026

2 min read

Source: Zacks

Key Numbers

monthly decline

6.6%

forward pe

lower than historical

NVIDIA (NVDA) has declined 6.6% over the past month, reflecting broader weakness in the semiconductor sector. However, strong demand for AI chips, solid cash flow, and a lower forward price-to-earnings (P/E) ratio make the stock worth holding, according to a Zacks analysis.

Reasons for the Decline

The monthly drop is primarily due to weakness across the chip sector, as investors worry about slowing demand in some end markets. Profit-taking after previous gains also contributed to the pullback.

Why Holding May Be Better

Despite the decline, demand for NVIDIA's AI-focused chips remains robust. The company generates strong cash flow, providing financial flexibility. Additionally, the forward P/E has contracted, making the stock relatively cheaper than in recent quarters.

Sector Context

NVIDIA's decline is not isolated; other chip stocks like Broadcom (AVGO) and Marvell Technology (MRVL) have also fallen. This suggests the weakness is sector-wide rather than company-specific.

What It Means for Investors

NVIDIA's fundamentals remain solid, especially with ongoing AI momentum. Investors should monitor sector trends and chip demand in coming quarters before deciding to sell.

Frequently Asked Questions

The decline is due to broad weakness in the chip sector and profit-taking after previous gains.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.