Nvidia (NVDA) shares edged lower Thursday, extending a recent pullback that has seen the stock struggle to hold the $200 level. After briefly reclaiming that mark in early trading, the stock gave up gains and fell roughly 1%, closing below the psychologically important threshold for the second consecutive session.
The weakness comes despite Nvidia's central role in the artificial intelligence boom. The company's graphics processing units remain the dominant hardware for training and deploying large AI models. However, investor enthusiasm has broadened across the semiconductor landscape, leaving Nvidia trailing many peers in recent weeks.
Rotation Across the AI Supply Chain
The pullback follows an extraordinary first half for semiconductor stocks. The VanEck Semiconductor ETF (SMH) surged more than 70% in the first six months of 2026, its strongest first-half performance since inception in 2000. But some of the biggest winners from that rally have since retreated as investors lock in profits.
Nvidia has notably lagged the broader chip advance despite maintaining its leadership in AI-focused GPUs. Investor attention has increasingly shifted toward other segments of the AI supply chain, including memory-chip makers and CPU-focused companies.
Memory-chip producers have benefited from supply constraints and rising demand, while companies like Advanced Micro Devices (AMD) and Intel have attracted interest on expectations that next-generation agentic AI systems will require substantially greater computing resources beyond GPUs alone. Micron has emerged as a standout beneficiary of the memory cycle.
This rotation has created a more competitive investment landscape for Nvidia, even as demand for its products remains robust. For more on the broader tech selloff, see Dow Slides 207 Points as Tech Selloff Intensifies; Chip Stocks Lead Decline.
Nvidia Launches Revenue-Sharing Program
Separately, Nvidia announced a new initiative designed to deepen its relationships with fast-growing AI startups. Under the program, the company will enter revenue-sharing arrangements with selected companies, providing access to computing resources powered by Nvidia hardware in exchange for a portion of future revenue.
Participating startups will receive token credits to support development and deployment of AI products. Cloud-based AI companies, model developers, and other technology firms will share portions of their product and cloud-generated revenue with Nvidia as part of the arrangement.
The initiative expands Nvidia's role beyond hardware supplier, positioning the company as a more active participant in the economics of the AI ecosystem. Two initial partners were identified: Australia-based Sharon AI, which plans to deploy up to 40,000 Nvidia GPUs, and Singapore-based Firmus Technologies, which is developing a 360-megawatt data center in Batam, Indonesia, expected to eventually house up to 170,000 Nvidia GPUs.
The program reflects the growing importance of access to computing power across the AI industry. As demand for advanced AI infrastructure continues to outpace supply, GPUs have become one of the most sought-after resources for startups and model developers. The scarcity of computing capacity has encouraged a growing number of AI companies to pursue revenue-sharing and equity-based arrangements with infrastructure providers and chipmakers as an alternative to traditional financing.
For Nvidia, the strategy creates another avenue to participate in the growth of emerging AI businesses while reinforcing demand for its hardware platform. For more on Nvidia's partnerships, see Palantir Stock Rallies on Buy Upgrade, AI Orchestration Edge and Nvidia Deal.
Investors will be watching to see whether the rotation out of Nvidia continues or if the company's dominant position in AI hardware and its expanding ecosystem strategy can rekindle momentum. For additional context on the rotation trend, see Nvidia Lags Chip Rally as Smart Money Rotates to Memory, Custom Silicon.
This article is for informational purposes only and does not constitute financial advice.
