Nvidia ‘s slump is hitting some technical milestones that suggest the stock could continue to slide, according to Raymond James. Shares of the dominant maker of chips used in artificial intelligence are down about 8% in July. Raymond James chart analyst Javed Mirza said in a July 25 note to clients that Nvidia has triggered a “mechanical sell” signal based on a moving average convergence/divergence indicator, or ” MACD ,” which measures price momentum — and it is not the only technical signal flashing sell. “In conjunction with price moving below an important technical level at the 50-day moving average … and Volume showing early signs of selling pressure … these three early technical negatives suggest an intermediate-term (1-3 month) corrective phase is attempting to take hold,” the note said. The key level to watch is Nvidia’s 50-day moving average, currently around $118 per share, according to Mirza. “A multi-day close below important technical support at the 50-day moving average … would confirm a new short-term corrective phase was underway. This would then open the door for a filling of the gap around 94.94 … or another 16.9% downside from current levels,” the note said. Nvidia has been the biggest beneficiary of the excitement around artificial intelligence. Other tech companies have been spending billions to order chips from Nvidia, which is seen as far ahead of its competitors in building high-end semiconductors. The stock is up more than 400% over the past three years. However, investors seem to be growing a bit skeptical around AI’s immediate contribution to higher corporate profits, at least in the near term. If that view spreads to executives at Big Tech companies such as Alphabet, it could result in new orders for Nvidia slowing down. Nvidia is set to report its second-quarter results on Aug. 28. — CNBC’s Michael Bloom contributed reporting.