Once a stock market darling, Nvidia stock seems to have taken a heavy beating due to increasing economic uncertainties, rising tech sector volatility, and intensifying competitive pressures. An increase in insider and institutional selling activity in the past year also seems to have affected investor confidence.

As of March 11, the Nasdaq Composite (NASDAQINDEX: ^IXIC) has fallen 13.6% from its closing peak on Dec. 17, 2024. The tech-heavy index was hovering around all-time highs as recently as Feb. 19. In Wall Street terms, the Nasdaq is now in a correction, defined as a decline of 10% or more from a recent closing peak.

Nvidia stock rose Wednesday as it continued to pare back some of its recent losses—but more big swings could be ahead.Shares in the chip maker rose 6.4% to $115.74, having closed the previous session up 1.