Nvidia stock (NVDA) fell as much as 5% on Tuesday, reversing an earlier rally fueled by CEO Jensen Huang's keynote speech at CES, the annual tech industry trade show in Las Vegas.
Huang's presentation was filled with updates on upcoming Nvidia products and previewed what's next for the burgeoning artificial intelligence market and other emerging technologies. Ahead of his keynote address, Nvidia broke records on Monday. Shares rose as much as 2.5% early Tuesday, but have since fallen sharply.
Nvidia's stock decline comes amid a broad decline in stocks after mixed November jobs data on Tuesday and separate manufacturing data stoked inflation concerns.
Nvidia stock is still up about 190% from last year. The company's latest information at CES further strengthened our bullish view on the stock.
Analysts from Stifel, Wedbush and Trust Securities reiterated their buy rating on the stock on Tuesday. On average, Wall Street analysts tracked by Yahoo Finance expect NVIDIA stock to rise to $172.80 over the next 12 months.
“[T]The company continues to further position itself not just in the data center, but in everything at the edge, from client computing to self-driving cars and robotics, leading to revenue growth and a buy rating on the stock. We support '' he wrote in a note to investors on Tuesday morning, giving the stock a buy rating.
One of Nvidia's most notable updates at the show is a new small artificial intelligence superchip called GB10 used in the company's (also new) client supercomputers.
A supercomputer that fits on an average-sized desk is Nvidia's project DIGITS Announced on Monday and promoted to developers, researchers, and students, the device is expected to be available in May for $3,000.
Nvidia also announced a major update to its robot strategy. The semiconductor giant has debuted its Cosmos platform, which provides AI models for developing humanoid robots and self-driving cars.
Nvidia stock closed at an all-time high of $149.43 on Monday ahead of Huang's keynote, surpassing its previous all-time closing price of $148.88 set on Nov. 7.
Wedbush analyst and Nvidia strongman Dan Ives said he sees robotics and autonomous technology becoming a $1 trillion market for the company. Huang pushed the number even higher in his keynote, saying self-driving technology alone “will probably be the first trillion-dollar robotics industry.”
Additionally, Nvidia showcased its new Blackwell generation of gaming GPUs (graphics processing units) and applications for developers to launch their own custom AI agents. Yahoo Finance's Dan Howley reported that Nvidia could debut a successor to the Blackwell generation of AI chips at the GTC conference in March.
