{"slug": "nvidia-s-nearly-1-trillion-wipeout-could-prompt-this-bullish-action", "title": "Nvidia's nearly $1 trillion wipeout could prompt this bullish action", "summary": "Nvidia's stock has lost nearly $1 trillion in market value since May 14, trading at its cheapest since early 2019, which could prompt the company to aggressively increase share buybacks. Citi analysts expect Nvidia to boost repurchases given the stock's weakness, potentially setting a floor for the price.", "body_md": "Nvidia ([NVDA](https://finance.yahoo.com/quote/NVDA/)) could be about to aggressively unleash share buybacks after a prolonged stretch of weakness in the stock.\n\nNvidia has [lost roughly $1 trillion in market value](https://finance.yahoo.com/technology/article/nvidias-valuation-just-hit-a-multiyear-low--even-as-revenue-sets-records-155948933.html) since the stock hit a record high on May 14. The stock is now trading at about 18 times forward earnings, below the S&P 500's ([^GSPC](https://finance.yahoo.com/quote/^GSPC/)) forward price-to-earnings multiple of 21 times.\n\nThis is the cheapest Nvidia stock has been since early 2019, before the AI boom erupted. In 2019, the tech company was still seen as a play on video game chips and bitcoin mining.\n\nThe stock has tanked about 16% since hitting its all-time high on May 14 as investors have rotated into memory chip names like Sandisk ([SNDK](https://finance.yahoo.com/quote/SNDK/)) and Micron ([MU](https://finance.yahoo.com/quote/MU/)).\n\n\"Nvidia reiterated its target of 50% of cash flow to be returned to shareholders this year,\" Citi analyst Atif Malik wrote in a new note following a call with Nvidia's investor relations. \"As it moves to outer years, management mentioned that given where the stock is, they can expect the company to increase buybacks.\"\n\nNvidia said in late May it would [expand its capital return program](https://finance.yahoo.com/markets/article/nvidias-cash-machine-is-now-funding-both-sides-of-the-ai-trade-205604847.html). It hiked its dividend to $0.25 per share from $0.01. It also announced a new $80 billion stock buyback program, in addition to an existing $39 billion program left over from a prior authorization.\n\nA more aggressive pace of repurchases under the plan — which could set a floor for the stock as Nvidia vacuums up shares on the open market — may be in the cards in light of the weakness over the past two months.\n\n\"We maintain Nvidia as our top buy-rated mega-cap data center semis pick on strong access to DRAM memory amidst constrained industry supply,\" Malik added.\n\nSeveral concerns are fueling the sell-off, Bank of America analyst Vivek Arya wrote in a note this week. They include gross margin pressure from higher memory costs, competition from custom ASIC chips, crowded investor ownership, and unproductive use of cash in vendor financing rather than stronger buybacks/dividends.\n\nThe weakness hasn't shaken Wall Street bulls on Nvidia, however.\n\n\"The setup is really, really great from a technical perspective,\" StockBrokers.com strategist Jessica Inskip said on Yahoo Finance's [Opening Bid](https://finance.yahoo.com/video/nvidia-market-cap-sheds-1-trillion-its-more-of-a-rotation-than-a-correction-143213433.html) (see video above). \"It's a great buying opportunity. I think Nvidia is part of the AI infrastructure build-out. They are creating a moat. And there is certainly more to it. So I would be a buyer here.\"\n\n*Brian Sozzi** is Yahoo Finance's Executive Editor, host of the '**Power Players With Brian Sozzi'** podcast and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X** @BrianSozzi**,** Instagram**, and** LinkedIn**. Tips on stories? Email brian.sozzi@yahoofinance.com.*\n\n**Click here for in-depth analysis of the latest stock market news and events moving stock prices**\n\n**Read the latest financial and business news from Yahoo Finance**", "url": "https://wpnews.pro/news/nvidia-s-nearly-1-trillion-wipeout-could-prompt-this-bullish-action", "canonical_source": "https://ca.finance.yahoo.com/news/nvidias-nearly-1-trillion-wipeout-could-prompt-this-bullish-action-122707475.html", "published_at": "2026-07-09 12:27:07+00:00", "updated_at": "2026-07-09 12:38:37.544196+00:00", "lang": "en", "topics": ["ai-chips", "artificial-intelligence", "ai-infrastructure"], "entities": ["Nvidia", "Citi", "Atif Malik", "Bank of America", "Vivek Arya", "StockBrokers.com", "Jessica Inskip", "Yahoo Finance"], "alternates": {"html": "https://wpnews.pro/news/nvidia-s-nearly-1-trillion-wipeout-could-prompt-this-bullish-action", "markdown": "https://wpnews.pro/news/nvidia-s-nearly-1-trillion-wipeout-could-prompt-this-bullish-action.md", "text": "https://wpnews.pro/news/nvidia-s-nearly-1-trillion-wipeout-could-prompt-this-bullish-action.txt", "jsonld": "https://wpnews.pro/news/nvidia-s-nearly-1-trillion-wipeout-could-prompt-this-bullish-action.jsonld"}}