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It’s surprising that Nvidia (NVDA) stock, once soaring to new heights, is now facing pressure. Despite surging demand for its GPUs, which are powering the artificial intelligence (AI) revolution — especially in the booming data center market — the stock has taken a hit.

The Nasdaq Composite index has entered correction territory as the tech-laden market index is now down more than 13% from the highs it achieved on Dec. 16 last year, and this souring market sentiment can be attributed to recent economic developments that have led investors to become risk averse.