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Nvidia shares slumped more than 2% on Monday, putting the AI chip darling in correction territory.
The chipmaker and de facto artificial intelligence trade has rallied 165% this year amid ongoing excitement for the buzzy technology trend. However, shares have faced a sluggish stretch in recent month. The stock is down 5% in December and officially more than 10% off its record close.
The recent underperformance in Nvidia could signal some profit taking after another marquee year. At the same time, the market has continued powering to new highs. That could be a warning signal if the pattern continues, with Roth MKM noting that the $125 to $130 level marks a key test for the stock and the overall market.
As Nvidia struggles, other chipmaking stocks have fared well, with Broadcom powering to new highs. The stock surged around 8% during Monday’s session.
