WHY DID NVIDIA ( NVDA ) RISE ONLY 19 % WHILE ITS SUPPLIERS DID FAR BETTER ?

What happened: NVIDIA (NVDA) closed at $217.23 on October 15, and its share price gains have lagged those of its suppliers over the past year. Key numbers: NVDA rose 16.48% over the past year; Taiwan Semiconductor rose 43.10% and Micron rose 360.14% over the same stretch. Why it matters: The article attributes the lag to the market having already repriced NVIDIA for the AI cycle while still pricing suppliers' earnings as temporary, leaving them more room to re-rate. Earnings grew faster than the share price, so the multiple came down without a judgment that the company was worth less.

NVIDIA (NVDA) closed at $217.23 on October 15, and its share price gains have lagged those of its suppliers over the past year.

The article attributes the lag to the market having already repriced NVIDIA for the AI cycle while still pricing suppliers' earnings as temporary, leaving them more room to re-rate. Earnings grew faster than the share price, so the multiple came down without a judgment that the company was worth less.