Nvidia (NVDA) stock closed Tuesday over 2% lower as the chipmaker now enters correction territory. Yahoo Finance's Market Domination Overtime deep dives into the chip stock's performance as earnings season creeps closer for major tech players.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.

Editor's note: This article was written by Luke Carberry Mogan.

Video Transcript

JOSH LIPTON: Nvidia following today's trade. The stock closed at $8.53, entering correction territory here. So slipping today's trade, a bit of red there, Julie. Remember, the company did host that developer conference last month, you know, unveiled that new line of so-called Blackwell chips. Investors cheered that.

Since that event, the stock has dipped a bit. Though, of course, listen, pull back the chart, it's still just a monster. It's up about 70% so far this year.

Why the dip today? Our buddy Steve Sosnick offers one theory. Strategists, of course, from Interactive Brokers saying taxes, that many investors had a good 2023. Obviously, the taxes for those profits are coming due, he points out. So maybe no surprise, Steve says, if fully invested individuals are selling to raise some cash now.

JULIE HYMAN: I mean, I guess you could also, if you wanted to make a fundamental case for why it pulled back a little, bit today you could look at the chip news that we got.

JOSH LIPTON: Intel.

JULIE HYMAN: You got Intel. You got Google even though Google's not making GPUs. It's making CPUs, so not competing directly with Nvidia. But nonetheless, you know, there is going to be competition at some point in this space. Although most of the people we talked to say NVIDIA is so far ahead, it will be fine. And it's not a zero sum game, that there's enough-- there's going to be enough demand to go around. I just want to confirm indeed, we did see Nvidia enter correction today. Your point is well taken, the thing is still a monster.

JOSH LIPTON: Yeah.

JULIE HYMAN: But it is now down 10.7%--

JOSH LIPTON: Yeah, that's interesting.

JULIE HYMAN: --from its close just on March 25. So it has been a fairly rapid move downward as well. And as we also know, Nvidia reports later than the other chip makers. So it's not due to report until later in May.

JOSH LIPTON: Yeah.

JULIE HYMAN: And so we went through this last time where we heard from all the others. And then we had to wait for NVIDIA to figure out if it was going to confirm the recent move. So we'll see if it continues to fade into that period of time.