Nvidia shares decline amid AI demand and export concerns

Nvidia shares fell 2.18% in early trading on Thursday, following a 1.5% decline from the previous session. The stock's weakness is attributed to concerns regarding artificial intelligence chip demand and United States export restrictions.

Technical analysis suggests the stock may be undergoing a necessary historical correction. Analysts note a bearish divergence in the 1-month Relative Strength Index (RSI), a pattern that has preceded significant market corrections in the past. Some technical projections suggest a potential pullback to test long-term support levels between $140 and $175.

Despite recent volatility, Nvidia maintains strong financial fundamentals, reporting approximately $216 billion in revenue, a gross margin of nearly 74.7%, and over $62 billion in cash and short-term investments.