NVIDIA Corp's (NVDA  ) growth this year has been remarkable as the stock has soared by over 200% since the beginning of the year, making it one of the top choices for investors in the current bull market.

At its peak in July, the price of the stock reached a year-to-date gain of 220%. However, the stock is currently experiencing a correction but still remains up 200% and could potentially rise again.

Nvidia's stock surge is largely attributed to the rising demand for its AI chips. As AI technology becomes more prevalent across industries, the demand for these chips will likely continue growing.

If this growth in demand continues unchecked, it could lead to a supply shortage and drive up stock prices, not only for Nvidia, but also for other companies that are leading the way in the AI sector.

Despite being faced with competitors like SambaNova and Cerebras, Nvidia's position in the AI chip market remains dominant.

These startup companies pose a potential threat to Nvidia's market share, which could, in turn, impact its stock performance.

Still, with that being said, Nvidia continues to excel, as evident from its exceptional stock performance.

The company's stock has consistently performed well throughout the year, except for a slight dip in April.

The most significant increase occurred in May, with a substantial gain of 35%. However, in July, the stock encountered obstacles while trying to reach the major $500 resistance level.

August is seeing the stock undergo a corrective phase, experiencing a 4.05% decline so far.

The stock price is currently fluctuating between the daily 50 simple moving average support level at $424 and the daily 20 resistance at $452.94.

If the price continues to decline, there is a potential safety net at the psychological support level of $400.

Nvidia has achieved impressive results thus far, with promising prospects for future growth. But the current indicators suggest a potential slowdown in momentum.

Investors should be prepared in case the stock experiences a significant correction, especially if it falls below $400. Nonetheless, long-term investors can still find satisfaction in Nvidia's overall performance up until now.

After the closing bell on Friday, August 4, the stock closed at $446.80, trading up by 0.39%.