NVIDIA Corporation (NVDA) saw its stock decline by 1.14% to close at $128.91 on December 18, 2024, after opening at $133.87. The stock experienced a volatile session, reaching a high of $136.70 before retreating to a low of $128.28. The trading volume was notably high at 260,397,405 shares, surpassing the average daily volume by over 10%. The decline in NVIDIA's stock price was largely influenced by broader market trends following the Federal Reserve's announcement of a rate cut, which led to a significant selloff in large-cap technology stocks. The Fed's decision to slow the pace of future rate reductions added to investor concerns, causing a broad-based retreat in the market.
Despite positive news earlier in the day, including Microsoft's substantial purchase of NVIDIA's AI chips and the launch of NVIDIA's Jetson Orin Nano Super Developer Kit, the stock was unable to maintain its upward momentum. Additionally, competition concerns were highlighted by AMD's new AI chip patent, which could pose a challenge to NVIDIA's dominance in the AI GPU market. These factors, combined with the overall market downturn, contributed to NVIDIA's stock decline.