The price of Nvidia (NVDA) fell on Monday by 2% after the company’s CEO held a two-hour presentation.

Nvidia’s stock has since recovered, now posting a gain of 0.9% from the previous day. The stock was down on Monday but still has not erased its gains from the last few weeks when the price shot up drastically following a very positive earnings report and a great future outlook for the company.

The Nvidia CEO, Jensen Huang, spoke on Monday about the company’s plans to launch Blackwell. This is a new processor that the company will be releasing which should help it stay out in front of the competition in the AI processor market niche.

Huang mentioned a few companies that would be using its new processor, including Cadence Design Systems, Synopsys Inc., and Ansys Inc. All of these companies gained more than 2% after his comments, benefiting already from promises that the new processor will allow for increased artificial intelligence functionality.

They were not the only beneficiaries of the CEO’s promises. Dell Technologies saw a 3.2% gain after Huang mentioned the company in his briefing.

Why Was Nvidia Stock Down?

What would make the tech stock drop when the news seems positive? There are a couple of factors working against the stock price at the moment that investors need to be aware of.

First of all, Nvidia may have peaked for now. The stock price climbed incredibly high in recent weeks. The price has grown from $481 at the beginning of the year to $888 per share at the time of this writing. That kind of growth is great for the company, but it can often mean a ceiling is approaching. It looks like Nvidia has found its ceiling for now. The stock has not increased beyond the price of $926 achieved on March 7th.

Secondly, the company has put $10 billion in development costs into the production of the Blackwell processor. Nvidia will have to work hard to recoup those expenses, which has soured investor sentiment for now on the company’s prospects of climbing higher.