NVIDIA stock fell 12% since July 31. This decline is double the VanEck Vectors Semiconductor ETF’s (SMH) decline of 12% and four times AMD decline of 3%. NVIDIA took a bigger hit as the company also suffered from a crypto bubble burst, slow uptake of its Turing GPUs (graphics processing unit), and rising competition from AMD. These three factors pulled NVIDIA stock down 45% from its all-time high of $292.76 in September 2018. At that time, NVIDIA investors had priced in strong double-digit earnings growth, which sent the stock over $290. When earnings began to fall, investors cashed their profits, sending the stock into a technical downtrend.

NVIDIA CEO Jensen Huang, in the latest earnings call, stated that the business has normalized. But this is a new normal with no extraordinary gains, as in 2017 and 2018. The stock has a long way to go to reach its September 2018 levels. NVIDIA is doing all the right things: