Nvidia stock is in a moment of “soul searching.”

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Investors’ voracious appetite for all things Nvidia (NVDA) could have slightly chilled lately, but the chill is temporary and the party itself has just begun, according to a Wall Street semiconductor analyst.

“I think some of these (issues) are growing pains,” a Bank of America analyst Vivek Arya told the executive editor of Yahoo Finance Brian Sozzi during an episode of Yahoo Finance Opening offer podcast (video above, listen below).

Stocks in the esteemed market and the Dow Jones Industrial Average component are down 8.5% in the past month. The Dow is down modestly in the past month, while the S&P 500 is up 0.5%.

Arya added, “Look at any of these great great actions. Every one of them has periodically gone through this moment of soul-searching.”

According to Arya, this soul-searching for Nvidia stock is related to several factors, including execution issues as it tries to push leading innovation and concerns about exposure to China ahead of possible tariffs from returning President Trump.

“Some of these are company-specific forces,” Arya said of the issues, “and some of them are market forces.”

The switch to Nvidia’s AI chip, Blackwell, hasn’t been perfect, Arya explained, which has baffled the bulls.

“The last two quarters have not been clean because they are going through the difficulties of growing from one product generation to a new generation,” Arya said.

Launched in March at the company’s annual GPU conference, Blackwell was hailed as Nvidia’s most powerful and innovative offering yet. But bringing the complete idea in product form to the masses has proven more difficult.

“Since (March), what we’ve seen is enforcement issues that keep it out of customers’ hands,” he said.

Nvidia’s issues with the mask and system-level settings can be resolved, but “we now have a two-quarter period where it’s very different for Nvidia to have these question marks and where estimates haven’t risen as much as they should have be,” he said. Arya.

Still, there’s plenty of upside for Nvidia stock over the long term, Arya says. Wall Street would generally agree: Yahoo Finance data is shown 94% of sell-side analysts rate Nvidia stock a buy or strong buy.

All eyes remain on the company as it makes further moves to unleash Blackwell in a market hungry for its offerings. Arya believes Blackwell will rack up billions in sales by 2025. The stock could also see a near-term catalyst as Nvidia’s founder and CEO. Jensen Huang takes the stage as a keynote speaker at CES 2025.