Nvidia Drops Over 8% for the Week as Analysts Say 'Hot Money' Has Shifted to Memory Stocks
Taylor Wilson
Nvidia is on track for a weekly loss exceeding 8%, its worst week since April last year, after the $200 support level broke; an analyst warns that hot money chasing AI chips has shifted to memory stocks, and Big Tech's market dominance is 'starting to erode.'
How much has Nvidia actually fallen this week?
Nvidia slipped another 1.1% in Friday pre-market to $193.51. If that holds through the close, the stock will have lost more than 8% this week — its worst weekly performance since April last year.
The $200 round-number level, widely seen as key support, broke on Thursday. This means → the market has no consensus on a next floor, and traders are navigating without a clear reference point.
The trigger: investors reassessing the scale of AI capital spending, which set off a broad tech sell-off. Nasdaq-100 futures fell 1.2% on Friday.
Where has the hot money gone?
Richard Reyle, CIO of Questar Capital Partners, said: "The hot money that has been chasing Nvidia for the past few years has now discovered memory stocks."
In plain terms = the capital hasn't vanished — it has switched lanes, moving from "AI compute" to "AI storage."
Yet the new destination hasn't been spared either: Micron fell 5.6% pre-market and Sandisk dropped 5.7%, dragged down by the same broad tech pressure.
Is Nvidia cheap now?
Nvidia currently trades at a forward P/E — a valuation multiple based on expected future earnings — of 18.88x (per FactSet). This means → after the sell-off, the valuation has come down noticeably from its highs, but there is no market consensus that it is a bargain.
When *Barron's* recommended the stock on May 13, it was priced at $226. It has since fallen roughly 13%.
Reyle explicitly advised against buying Big Tech or AI stocks right now, saying their market dominance is "starting to erode." This reflects a shift among some institutional investors — from chasing the AI rally to sitting on the sidelines.
Content is for reference only, not financial advice.