Nvidia's Chip Pricing Power Under Pressure as Market Shifts

Nvidia's stock has taken a hit recently, and traders on Kalshi are betting that the company's chip prices will continue to decline. Despite being up 12% in 2026, Nvidia's shares have slid about 3% in the past month, underperforming the VanEck Semiconductor ETF, which has gained 15% in the same period. The focus on memory chips and infrastructure in the AI buildout has driven gains for companies like Micron Technology and Sandisk, leaving Nvidia in the shadows. The price of computing power for Nvidia's flagship B200 chip has also dropped, from $6.

11 per hour on May 30 to $4. 22 on June 21, according to Ornn. Kalshi traders are now pessimistic about the chip's compute price surpassing its May high. The cost of renting GPUs, which most companies do through cloud providers, can fluctuate with demand for AI infrastructure.

According to Seoyoung Kim, a finance professor at Santa Clara University, the uncertainty around computing power needs and supplier capacity is contributing to the volatility. A recent deal between Google and SpaceX, which will use 110,000 Nvidia GPUs, has boosted optimism about Nvidia's performance, with RBC Capital Markets predicting a strong second half of 2026 and 2027. However, the market remains cautious about Nvidia's ability to maintain its chip pricing power.

Source: CNBC