Nvidia Lags Chip Rally as Kyber Delay Raises Caution

Nvidia shares rose 0.5% to $195.86 Monday in New York trading, lagging the iShares Semiconductor ETF, which advanced 4.3%. The stock’s relative weakness came as investor attention broadened beyond Nvidia and after a report of a delay to the company’s Kyber rack architecture.

Several chip names led the sector rally. Western Digital jumped about 10%, Advanced Micro Devices climbed roughly 10%, Teradyne rose 8% and Intel gained about 6%. Marvell Technology and Oracle also traded higher. Investors increased interest in memory chips, central processing units, semiconductor equipment and custom AI silicon.

Market focus shifted from a narrow concentration on Nvidia’s GPUs to a wider set of suppliers that could supply data centers and cloud providers expanding AI deployments. That rotation left Nvidia underperforming many peers while demand for AI infrastructure continued.

Research firm SemiAnalysis reported that Nvidia’s Kyber NVL144 rack architecture was delayed from 2027 to 2028 because of manufacturing challenges with a printed circuit board. SemiAnalysis wrote, “Kyber NVL144 rack architecture has been delayed to 2028 as the PCB midplane remains challenging from a manufacturability standpoint.” The Kyber rack is designed to house 144 Rubin Ultra chips in a single rack-scale computing unit. Nvidia did not comment on the report.

Goldman Sachs maintained a Buy rating on Nvidia and kept a $285 price target. The bank raised its earnings estimates by about 12% on average, reporting that its calendar-year 2026 and 2027 forecasts are 14% and 34% above broader Wall Street expectations, respectively. Goldman expects Nvidia to deliver a “beat-and-raise” quarter and highlighted a previously outlined $1 trillion data center opportunity, growth in server CPUs related to agentic AI, shifting competitive dynamics in AI infrastructure and gross margin trends as component costs change.

Goldman also noted that the stock currently trades below its historical valuation levels and pointed to Nvidia’s 78% total return over the past year and 65% revenue growth as context for its outlook.

Investors will watch upcoming quarterly results, product launches and hyperscaler spending to assess how AI infrastructure spending is distributed across the semiconductor industry.