In trading on Tuesday, Nvidia's stock was declining. Investors are concerned about the speed at which the chip manufacturer can increase the sales of its Blackwell artificial intelligence processors, resulting in a rare share-price decline.
-1.14% At midday, shares were trading at $129.85, a 1.6% decline. On Monday, the stock experienced a 1.7% decline.
The stock is currently in correction territory, which indicates that it has declined by over 10% from its highest closing price of $148.88 on November 7.
As the market awaits evidence of the speed at which Nvidia can produce and sell its Blackwell AI chips in mass quantities, the shares have largely traded sideways over the past month, despite the fact that Wall Street analysts remain optimistic about the company.
Nvidia has encountered overheating issues with power chips from Alpha & Omega Semiconductor (AOSL).
-0.12% , which it is currently testing for its Blackwell series GB300 and B300 systems, according to Ming-Chi Kuo, an analyst at TF International Securities.
Kuo wrote in a research note on Monday that if the issue is not resolved, Nvidia may implement proactive measures to prevent delays in the mass production of the GB300/B300.
Nvidia has already declared that its Blackwell chips are sold out until 2025, so it is unlikely that any minor technical issues will affect its sales. Nevertheless, investors may be looking for other stocks to generate short-term gains in light of the company's remarkable growth over the past two years and may be taking profits.