On January 6, 2025, Nvidia’s shares experienced a significant decline, plummeting by over 4% during late morning trading. This reversal came after the chipmaker’s shares rallied the previous day to close at an all-time high.
Previous Day’s Rally
The previous day, Nvidia’s shares climbed more than 3% to reach a record close of $149.43 per share, surpassing its previous record close of $148.88 in early November. The chipmaker’s shares rallied ahead of chief executive Jensen Huang’s keynote at the Consumer Electronics Show (CES) in Las Vegas.
CES Keynote Highlights
During his keynote address on Monday night, Huang announced a suite of artificial intelligence tools for AI agents and updates to the chipmaker’s robotics efforts. These developments were well-received by investors, contributing to the previous day’s rally. Additionally, Nvidia unveiled its next-generation RTX Blackwell GPUs for gaming, priced between $549 and $1,999.
Project DIGITS: A Personal AI Supercomputer
To conclude his keynote address, Huang announced Project DIGITS, a personal AI supercomputer designed for AI researchers and developers. This innovative device can run AI models with up to 200 billion parameters, surpassing OpenAI’s GPT-3 capabilities. The chipmaker collaborated with Taiwanese semiconductor company MediaTek to design the AI supercomputer.
Availability and Pricing
Project DIGITS will be available from Nvidia and its partners in May, starting at $3,000. This device is expected to revolutionize the field of artificial intelligence research and development.
Bank of America’s Analysis
Ahead of Huang’s keynote address, Bank of America reiterated its ‘buy’ rating on Nvidia, with research analyst Vivek Arya describing CES as a ‘positive catalyst’ for the chipmaker. In a note on Tuesday, Bank of America maintained its buy rating on Nvidia, citing the chipmaker’s continued dominance in genAI compute and ecosystem.
Why Nvidia’s Shares Dropped
Despite the positive developments at CES, Nvidia’s shares plummeted by over 4% during late morning trading. This decline may be attributed to investors’ uncertainty about when and how quickly Nvidia’s robotics strategy will influence its financials.
Investor Reaction
The chipmaker’s Taiwan-listed shares were up by 4.5% at the market close, indicating that investors remain optimistic about Nvidia’s prospects. However, the drop in US-listed shares highlights the complexities of the stock market and the need for careful analysis.
Conclusion
Nvidia’s CES keynote address was a significant event, showcasing the chipmaker’s innovative products and technologies. While the previous day’s rally was encouraging, the decline in shares during late morning trading serves as a reminder that the stock market can be unpredictable. As investors continue to monitor Nvidia’s progress, it is essential to consider the various factors influencing the company’s financials.
Key Statistics
- Previous Day’s High: $149.43 per share
- Previous Record Close: $148.88 (early November)
- Intraday All-Time High: $153.13 (January 6, 2025)
- CES Keynote Highlights:
- Suite of artificial intelligence tools for AI agents
- Updates to robotics efforts
- Next-generation RTX Blackwell GPUs for gaming (priced between $549 and $1,999)
- Project DIGITS: A personal AI supercomputer (starts at $3,000)
Additional Resources