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The pain isn't over for Nvidia stock, now down 18% in just 7 days
Nvidia's stock plunge deepened on Monday, with the stock down as much as 8% in the session to trade at $114.51.
Shares of the artificial intelligence GPU maker officially entered a bear market last week, down more than 20% from their intra-day highs reached in early January.
The losses have intensified over the past week. The stock is down 18% in seven days, dropping sharply from a February 20 closing price of $140.11.
Nvidia's fourth-quarter earnings report last week kickstarted the latest period of weakness for the stock. While the report beat analyst estimates and included solid forward-looking guidance, it didn't meet Wall Street's most lofty expectations and raised concerns about profit margins .
On Monday, investors also appeared to be worried about reports that Nvidia's overseas AI chip sales are leaking into China.
The Wall Street Journal reported that Chinese tech companies are getting their hands on Nvidia's Blackwell GPUs despite strict US export controls.
According to the report, a Blackwell server containing eight AI GPUs could fetch over $600,000 in China, while the firm's previous-generation Hopper server could sell for about $250,000 in the country.
Black market traders in China are securing the chips through intermediaries in Malaysia, Vietnam, and Singapore, the report said.
Bloomberg also reported on Nvidia's overseas chip sales on Monday, noting that Singapore launched a fraud investigation into whether servers shipped from Dell Technologies and Super Micro Computer to Malaysia housed Nvidia chips that are barred from entering China.
As traders digest Nvidia's stock's latest drop on Monday, technical signals are flashing a warning sign.
Nvidia shares fell short of an important resistance level around $130, and are now trading below the 50-day and 200-day moving averages.
Read the original article on Business Insider