NVIDIA (NASDAQ: NVDA) has seen a sharp decline in recent sessions, with its stock now down 15% from its peak. On Tuesday, it shed another 2%, currently trading at $127 per share. The downturn follows recent comments highlighting challenges in chip supply, fueling investor concerns over demand and inventory levels.
Key Drivers Behind the Slide

Supply Chain Pressures

Management’s remarks about potential constraints in the chip supply chain have raised questions about NVIDIA’s ability to meet demand, especially for its sought-after AI and gaming GPUs.

Broader Market Sentiment

Semiconductor stocks have broadly retreated amid macroeconomic headwinds, including fears of a global slowdown and interest rate hikes.

Valuation Concerns

At its previous highs, NVIDIA was trading at elevated multiples, prompting some investors to lock in profits amid rising uncertainty.

Data Insights

Historical Earnings Trends: Use the Earnings Historical API to review NVIDIA’s past performance and assess its growth trajectory.
Sector Valuation: Evaluate sector-wide trends with the Sector P/E Ratio to gauge if NVIDIA’s valuation aligns with its peers.
Revenue Segmentation: Explore the Revenue Product Segmentation API to understand NVIDIA’s product-level revenue contribution.

Outlook
While NVIDIA remains a leader in AI and semiconductor technology, the stock’s performance will likely depend on how it navigates these supply challenges and sustains its growth narrative in the coming quarters.