Nvidia Stock Takes a Hit Despite CEO’s Impressive CES Keynote
A Brief Respite from Record Highs
Nvidia’s stock (NVDA) experienced a sudden 5% drop on Tuesday, erasing earlier gains sparked by CEO Jensen Huang’s keynote at the Consumer Electronics Show (CES) in Las Vegas. The presentation had sent shares soaring as much as 2.5% earlier in the day, building on Monday’s record close.
A Glimpse into the Future of AI and Emerging Tech
Huang’s keynote offered a wealth of updates on upcoming Nvidia products, providing a sneak peek into the rapidly evolving artificial intelligence market and other emerging technologies. The company’s innovative approach has positioned it for continued growth, with analysts at Stifel, Wedbush, and Truist Securities reiterating their Buy ratings on the stock.
Analysts Bullish on Nvidia’s Future
On average, Wall Street analysts expect Nvidia shares to rise to $172.80 over the next 12 months. Truist Securities analyst William Stein, who holds a Buy rating on the stock, noted that Nvidia is “positioning itself more favorably” across various areas, including datacenter, client compute, autonomous vehicles, and robotics, supporting revenue growth and his Buy rating.
GB10: A Game-Changing AI Superchip
One of the most notable updates from CES was the unveiling of Nvidia’s pint-sized artificial intelligence superchip, GB10, which will be used in its new client supercomputer. This compact device, priced at $3,000 and set to launch in May, is part of Nvidia’s Project DIGITS, aimed at developers, researchers, and students.
Robotics Strategy Takes Center Stage
Nvidia also debuted its Cosmos platform, offering AI models for developing humanoid robots and autonomous vehicles. According to Wedbush analyst Dan Ives, robotics and autonomous technology represent a $1 trillion market for the company, with Huang estimating that autonomous driving technologies alone could become a multitrillion-dollar industry.
Gaming GPUs and Custom AI Agents
In addition to its robotics updates, Nvidia showcased new Blackwell-generation gaming GPUs and applications for developers to launch their own custom AI agents. The company may also debut a successor to its Blackwell generation AI chips during its GTC conference in March.
A Brief Setback Amid Broader Market Slump
Nvidia’s stock decline on Tuesday was part of a broader market slump, driven by mixed November job openings data and inflation concerns. Despite this setback, Nvidia shares remain up approximately 190% from last year, with analysts and investors alike bullish on the company’s future prospects.
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