NEW YORK, July 22, 2026, 07:05 EDT — Shares of NVIDIA Corporation (NASDAQ:NVDA) traded at $205.75 in premarket action, down 0.74% ahead of the main trading session. The decline comes even as the company continues to announce significant supply-chain developments, including a new manufacturing facility and large-scale server orders.
On Tuesday, Nvidia shares rose 1.97%, closing at $207.29, but underperformed the broader chip sector. The PHLX Semiconductor Sector index advanced 5.21% on the same day, meaning Nvidia lagged by 3.24 percentage points. With a market capitalization of $5.02 trillion, the stock faces heightened expectations for positive news to translate into share price gains.
Supply-Chain Expansion
Wistron Corp (TPE:3231) launched a 324,000-square-foot manufacturing facility in Fort Worth, Texas, on Tuesday. The $700 million plant will produce GB300 systems and is expected to begin assembling Vera Rubin units. Nvidia anticipates monthly production of tens of thousands of boards through the remainder of the year, boosting physical supply capabilities in the U.S.
Super Micro Computer Inc (NASDAQ:SMCI) secured over $60 billion in new orders for the fourth quarter, with deliveries scheduled for upcoming periods. The company's backlog reached an all-time high. However, the total order value—more than 73.5% of Nvidia's most recent quarterly revenue—does not represent a direct sales projection for Nvidia, as Super Micro integrates chips from various sources into its full systems.
Preliminary figures show Super Micro's revenue near the bottom of its $11 billion to $12.5 billion guidance range, with early gross margins between 15% and 17%, compared to earlier guidance of 8.2% to 8.4%.
Investor Sentiment Shifts
Recent data points have divided investor assessments into four categories: physical supply, channel demand, customer economics, and market response. While physical supply metrics are improving, the market response—Nvidia's 1.97% gain versus the chip index's 5.21% rise—indicates investors are now looking for evidence that customers are generating returns from their Nvidia-based investments.
Nvidia's fiscal first-quarter revenue grew 85% year-over-year to $81.6 billion, with data-center revenue up 92% to $75.2 billion, representing about 92% of total revenue. The midpoint of the $91 billion second-quarter outlook suggests a sequential increase of 11.5%, reflecting sustained high expectations.
Product metrics have shifted focus to power constraints. According to Nvidia, a partner's benchmark achieved 10 times the tokens per megawatt compared to Grace Blackwell, though outcomes remain workload-dependent.
Customer Case Studies
Bristol Myers Squibb Co (NYSE:BMY) provided an initial customer example, reporting that AI tools reduced trial drug development time by 20% to 30%. Chief Technology Officer Greg Meyers noted, "Electricity is not getting cheaper," as reported by Reuters.
Alphabet Inc (NASDAQ:GOOGL), with Google Cloud rolling out Rubin, is set to release earnings after Wednesday's market close. The company's capital expenditures and cloud performance are increasingly important for Nvidia's growth narrative.
"The numbers are expected to be strong, yet the stocks have already been priced for perfection," said Lindsey Bell, chief investment strategist at 248 Ventures, in a Reuters report.
Risks and Outlook
Several risks remain: Rubin benchmarks may not apply to all workloads, Super Micro's changing order composition could reduce the proportion of Nvidia components, and lower capital expenditure spending could offset improvements in supply speed. Despite these headwinds, the hardware pipeline remains robust, and Nvidia's shares now require evidence that customers are profiting from their investments.
