Nvidia has traded sideways for more than a month. Geopolitics, high expectations and rivals' advances help explain the move.

Nvidia shares slumped more than 2% on Monday, putting the AI chip darling in correction territory. The chipmaker and de facto artificial intelligence trade has rallied 165% this year amid ongoing excitement for the buzzy technology trend.

Nvidia stock slipped into correction territory Monday, but analysts are still bullish on the chipmaking giant.

The world's biggest semiconductor foundry, Taiwan Semiconductor Manufacturing (NYSE: TSM), is the go-to manufacturer of chips for multiple chip designers such as Nvidia, Micron Te