Market Analysis
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Nvidia stock (NVDA) dropped over 6% on Tuesday, reversing gains from the previous day when shares closed at a record high ahead of CEO Jensen Huang's keynote at the CES tech conference in Las Vegas.
Huang’s presentation highlighted upcoming Nvidia products and advancements in artificial intelligence and other emerging technologies. While shares initially rose as much as 2.5% early Tuesday, they later slid, making Nvidia the Dow's worst performer of the day. The decline aligned with a broader market downturn after mixed November job openings data and inflation concerns.
Despite Tuesday's dip, Nvidia shares remain up roughly 190% over the past year. The CES announcements sparked renewed optimism among analysts, with firms like Stifel, Wedbush, and Truist Securities reiterating their "Buy" ratings. On average, Wall Street expects Nvidia shares to reach $172.80 within the next year.
Truist Securities analyst William Stein expressed confidence in Nvidia's growth, citing its expanding influence in datacenters, client computing, autonomous vehicles, and robotics. He maintained a "Buy" rating, emphasizing the company’s positioning for long-term revenue growth.
Key updates from Nvidia at CES included the unveiling of the GB10, a compact AI superchip designed for its new client supercomputer, part of Project DIGITS. The desktop-sized supercomputer, targeted at developers, researchers, and students, will be available in May for $3,000.
Nvidia also revealed advancements in robotics with its Cosmos platform, offering AI models for humanoid robots and autonomous vehicles. The company debuted new Blackwell-generation gaming GPUs and developer tools for launching custom AI agents. Additionally, Nvidia hinted at a successor to its Blackwell AI chips, expected to be announced during its GTC conference in March.
Wedbush analyst Dan Ives projected robotics and autonomous technologies as a $1 trillion market for Nvidia, with Huang suggesting autonomous driving alone could become the first multitrillion-dollar robotics industry.
Nvidia’s stock closed at a record $149.43 on Monday, surpassing its previous high of $148.88 set on November 7.
Paraphrasing text from "Yahoo!Finance" all rights reserved by the original author.