Nvidia (NVDA) stock sank 7% on Tuesday because the overall market declined on the primary trading day of the month.

The AI chip maker was the worst performer among the many “Magnificent 7” stocks, falling to its lowest level since mid-August.

“I do not think it’s down on isolation, a lot of things are down today,” Stacy Rasgon, Bernstein senior analyst, told Yahoo Finance Survive Tuesday morning.

Technology (XLK) stocks led the declines as investors rotated into defensive sectors like Staples (XLP) and Utilities (XLU).

Tuesday’s decline comes lower than per week after Nvidia posted quarterly results that beat consensus estimates but did not send the stock price higher.

“The print was actually excellent. The difficulty people had on it was not a lot the revenue, it was the gross margins. They’re guiding gross margins down slightly bit into the tip of the 12 months,” said Rasgon.

Nvidia is anticipated to ramp up production of its next generation chip Blackwell within the fourth quarter of this 12 months, which could send the stock higher, said Rasgon.

“I feel now persons are frightened, sort of trudging water slightly bit until those products get into the marketplace,” said Rasgon. “Once they begin ramping Q4, Q1…if that ramp is solid, I expect the stock would probably follow.”

Wall Street remained mostly bullish on the stock following the earnings release, with Stifel analysts reiterating their Buy rating and $165 price goal.

“Greater picture, the modernization of knowledge center compute continues and, in our view, NVDA stays the first beneficiary,” wrote the analysts last week.

Up until last week, Nvidia had led the recent rebound in stocks, climbing nearly 25% in a span of three weeks following a world market sell-off.

Despite Tuesday’s losses, the stock is up greater than 125% year-to-date.

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.