NVIDIA Corporation (NVDA) saw its stock decline by 1.22% to close at $130.39 on December 17, 2024, amid a confluence of negative factors impacting the semiconductor giant. The stock opened at $129.00 and fluctuated between a low of $126.86 and a high of $131.59, with trading volume surpassing the average at 252,553,898 shares. The decline was driven by several headwinds, including geopolitical tensions and production challenges. Notably, the U.S. is preparing to implement rules limiting the sale of advanced AI chips to regions like Southeast Asia and the Middle East, which could restrict NVIDIA's market access. Additionally, production delays with the Thor chip have deterred automakers, while overheating issues with the Blackwell AI processors have raised concerns about NVIDIA's ability to maintain its competitive edge.
The broader market environment also contributed to NVIDIA's struggles, with major indices like the Dow Jones Industrial Average trading lower due to mixed economic signals and anticipation of the Federal Reserve's policy meeting. Furthermore, NVIDIA's stock has entered correction territory, having fallen over 10% from its recent highs, triggering sell signals for some investors. Despite these challenges, some analysts remain optimistic about NVIDIA's long-term prospects, citing its dominance in the AI sector and potential growth in new market segments.