Nvidia shares fell 1.7% Monday to close at $132. That’s around 11% off its closing high of $148.88 in November, putting Nvidia in correction territory.

That said, Nvidia is still up 166% this year, and a correction doesn’t necessarily signal a sustained downward trend. And it must be noted that other chipmakers are still powering forward.

It’s easy to interpret a pullback like this as a sign of trouble, but corrections are a natural part of healthy market behaviour—especially after the kind of meteoric rise Nvidia has seen this year.

The company remains one of the strongest players in the chipmaking sector, benefiting from surging demand for AI-driven tech and its dominance in graphics processing units (GPUs).

What we’re seeing now, I believe, is likely a breather rather than the beginning of a prolonged decline. Stocks rarely rise in a straight line. Investors often take profits after big runs, and Nvidia’s 166% year-to-date climb certainly qualifies as a massive move.

This correction, then, may simply be a recalibration.

It’s also worth noting that Nvidia’s fundamentals remain solid.

The AI boom continues to drive demand for its chips, and as AI adoption accelerates across industries—from cloud computing to autonomous vehicles—Nvidia is positioned as a key enabler of that growth.

In addition, while Nvidia shares have pulled back, other major players in the chip sector continue to perform well, suggesting that confidence in the broader semiconductor industry remains intact.

Historically, corrections have often presented opportunities for long-term investors. Nvidia’s pullback could be a chance to reassess its position and, for those with conviction in its growth story, to consider adding exposure at a slightly lower price point.

The broader takeaway is that short-term price movements shouldn’t distract from long-term trends.

Nvidia’s fall into correction territory is notable, but it doesn’t signal a fundamental change in its trajectory. The structural drivers of its success—AI, data centers, and cutting-edge chips—remain firmly in place.

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London-born Nigel Green is founder and CEO of deVere Group. Following in his father’s footstep, he entered the financial services industry as a young adult. After working in the sector for 15 years in London, he subsequently spent several years operating within the international space, before launching deVere in 2002 with a single office in Hong Kong. Today, deVere is one of the world’s largest independent financial advisory organizations, doing business in 100 countries and with more than $12bn under advisement. It specializes global financial solutions to international, local mass affluent, and high-net-worth clients. In early 2017, it was announced that deVere would launch its own private bank. In addition, deVere also confirmed it has received its own investment banking license.