Nvidia Rebounds as AI Chip Sentiment Shifts

Nvidia's stock has broken out of its 2025 stagnation with a 6% rally last week, reclaiming its position as the bellwether of AI semiconductor trades. The rebound follows months of sideways movement amid export restriction fears and investor skepticism about unsustainable growth trajectories.

"The sentiment had definitely turned on AI semis in general," said CFRA analyst Angelo Zino, highlighting Nvidia's role as the sector's pacesetter. The chipmaker's recent surge suggests markets are digesting its two-year bull run, with Wednesday's 4% gain and Friday's 2% climb forming a decisive breakout.

Deepwater Asset Management's Gene Munster noted the paradox of Nvidia's success: "Despite all the good things going on with AI, it's still hard for Nvidia investors to sleep well at night." The stock's volatility reflects lingering doubts about maintaining its explosive growth pace, even as it continues setting records.