The Direxion Daily NVDA Bull 2X Shares (NVDU) closed down 2.56% at $87.27 on December 18, 2024, as Nvidia's stock faced a 1.49% decline to $128.45 amid a broader semiconductor sector slump, with the SOX index dropping 3.85%. Nvidia's recent downturn is attributed to a technical correction, with the stock falling over 10% from its November highs, exacerbated by a head and shoulders pattern signaling further bearish momentum. The market is also reacting to AMD's new AI chip patent, which poses a competitive threat to Nvidia's dominance in AI GPU technology. Additionally, Nvidia's stock is under pressure due to easing AI chip demand signals, as indicated by Microsoft's comments on supply constraints, and geopolitical tensions involving China. Despite these challenges, Nvidia's long-term prospects remain buoyed by its Blackwell processors and robust profit margins.