NVIDIA shares (NVDA) fell more than 6% on Tuesday, a day after stocks closed at a record high in anticipation of Speech by CEO Jensen Huang at the annual CES technology industry show in Las Vegas.
Huang’s presentation Monday evening gave a burst of updates on upcoming Nvidia products, providing insight into the future of the booming market for artificial intelligence and other emerging technologies. Shares jumped as much as 2.5% early Tuesday before reversing direction. The chipmaker was the Dow’s worst performer of the session.
The drop in Nvidia stock comes in a context stocks fall wider on Tuesday After November, job opening data came in mixed and separate economic data fueled inflation concerns.
Nvidia shares are still up about 190% over the last year. Its updates at CES fueled more bullish views on the stock.
Analysts at Stifel, Wedbush and Truist Securities reiterated their buy ratings on the stock on Tuesday. On average, Wall Street analysts tracked by Yahoo Finance expect Nvidia shares to rise to $172.80 over the next 12 months.
“(T)he company continues to position itself more favorably – not just in the data center but increasingly across all cutting-edge areas – from client computing to autonomous vehicles to robotics – supporting the growth of earnings and our buy rating on the stock,” Truist Securities analyst William Stein, who holds a buy rating on the stock, wrote in a note to investors Tuesday morning.
One of Nvidia’s most notable updates at the show: a new pint-sized artificial intelligence superchip called GB10 used in its (also new) client supercomputer.
The supercomputer – sized to fit on a medium-sized desk – is part of Nvidia’s DIGITS project announced Monday, announced to developers, researchers and students, and the device will be available in May for $3,000.
Nvidia also revealed major updates to its robotics strategy. The chip giant launched its Cosmos platform, which offers AI models to develop humanoid robots as well as autonomous vehicles.
Nvidia Stock closed at a record high of $149.43 on Monday before Huang’s keynote address – eclipsing his previous closing high of $148.88 reached on November 7.
Wedbush analyst and Nvidia bull Dan Ives said he sees robotics and autonomous technology as a $1 trillion market for the company. Huang put that number higher in his speech, saying that autonomous driving technologies alone “will likely constitute the first multi-billion dollar robotics industry.”
Additionally, Nvidia introduced new Blackwell generation gaming GPUs (graphics processing units) and applications allowing developers to launch their own custom AI agents. Dan Howley of Yahoo Finance reported that Nvidia could launch a successor to its Blackwell-generation AI chips at its GTC conference in March.