Nvidia’s valuation milestone masks underperformance against peers due to lost revenue in China amid U.S. export restrictions.
Nvidia’s market capitalization reached $5.4 trillion on May 13, 2026, setting a record but failing to outpace semiconductor peers. The company’s shares rose 19% in April, lagging the iShares Semiconductor ETF’s 40.4% gain, the widest gap in over two years.
Rivals surged during the same period, with AMD up 90% and Micron climbing 76%. Analysts attribute Nvidia’s relative weakness to China, where U.S. export curbs erased a $17 billion market. The company once controlled 95% of China’s advanced AI chip demand.
The divergence highlights broader sector strength despite Nvidia’s dominance in global AI chip demand. Market focus shifts to how export policies may reshape revenue streams.