With shares down 14% from an all-time high of $136 hit two months ago, Nvidia's (NASDAQ: NVDA) rocketship rally seems to be unraveling, even as revenue and earnings continue to hit new records. While the chipmaker is still arguably one of the best companies in the world, the market may be losing excitement about the artificial intelligence (AI) industry in general.

Let's explore the pros and cons of the current situation to decide whether investors should buy the dip or avoid this declining stock.

The truth is that no stock can continue rising at a parabolic rate forever. After gaining over 600% since the start of 2023, Nvidia was due for a pullback. That said, some emerging macroeconomic challenges could eventually spell fundamental trouble for the high-flying company.

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Source Fool.com