Despite strong fundamentals, Nvidia's stock has lagged behind key semiconductor peers following TSMC's earnings report, as memory chip companies see renewed investor momentum. The divergence highlights shifting market sentiment within the tech sector.
- Nvidia (NVDA) rose only 1.2% on January 15, 2026, vs. a 4.8% gain in the broader semiconductor index.
- TSMC reported $24.3 billion in Q4 revenue, exceeding expectations by 7%.
- Micron (MU) jumped 12.3%, SK Hynix (000660.KS) surged 18.1% post-earnings.
- Memory-focused ETFs saw $2.1 billion in inflows, while broad semiconductor ETFs experienced outflows.
- Nvidia’s forward P/E stands at 38x, compared to sector average of 25x.
- Cloud providers increasing investment in high-memory server configurations.
Nvidia Inc. (NVDA) saw its shares rise just 1.2% in early trading on January 15, 2026, trailing a broader semiconductor index that gained 4.8%. This underperformance comes after Taiwan Semiconductor Manufacturing Co. (TSMC) reported fourth-quarter revenue of $24.3 billion, surpassing estimates by 7%, and reaffirmed strong demand for advanced logic chips used in AI accelerators. While Nvidia remains central to the AI infrastructure narrative, investors are increasingly favoring companies tied directly to memory technologies—especially DRAM and NAND producers. The shift is evident in recent performance: Micron Technology (MU) rose 12.3% post-earnings, while SK Hynix (000660.KS) surged 18.1% following a positive outlook on data center memory demand. These gains reflect growing optimism about inventory normalization and stronger-than-expected server buildouts in 2026. Meanwhile, Nvidia’s valuation remains elevated, with a forward P/E ratio of 38x—well above the semiconductor sector average of 25x—raising concerns about sustainability without new catalysts. Market analysts note that the outflow from Nvidia into memory stocks is not purely fundamental but also technical. Exchange-traded funds focused on memory and storage semiconductors have seen $2.1 billion in inflows over the past two weeks, compared to net outflows of $580 million from broad semiconductor ETFs. This capital reallocation underscores how momentum-driven flows can amplify sector-specific trends. The divergence affects more than just stock prices. Cloud providers like Amazon Web Services and Google Cloud are reportedly adjusting procurement strategies toward higher-memory configurations, indirectly benefiting memory manufacturers. For Nvidia, this implies that while its leadership in GPU design remains intact, the near-term upside may depend on broader ecosystem adoption rather than standalone product momentum.