Nvidia's Rally Takes a Pause. Is the AI Stock Losing a Step, or Should You Buy the Dip?

Nvidia (NVDA) has been one of the hottest large-cap stocks of the year, thanks to its incredible run. The stock has surged about 135% year-to-date and a solid 179% over the past 12 months. This impressive rally in NVDA stock reflects massive demand for its graphics processing units (GPUs), which are considered the backbone of the booming artificial intelligence (AI) industry.

Thanks to the stellar demand for its products, Nvidia continues to deliver solid financials. In fact, its Q2 earnings once again blew past analysts' forecasts. Despite its strong financials, the rally in Nvidia stock has recently hit a pause. The stock is down about 17.4% from its 52-week high of $140.76, set in June, and it has corrected by over 10% in the past month.