Nvidia Corp. shares fell on Tuesday after CEO Jensen Huang’s product presentation failed to boost the company’s stock to new heights. The stock dropped 6.2% to $140.14 in New York, marking the largest single-day decline in four months. While the announcements made by Nvidia provided a positive outlook on the company’s future prospects, some investors were looking for more immediate gains. Stifel Financial Corp. noted that Nvidia’s announcements were significant but more long-term in nature.
Huang unveiled the new lineup at the CES trade show in Las Vegas, outlining a vision of AI’s expansion across various industries. Nvidia aims to be at the forefront of a tech-driven future with humanoid robots, automated factories, and self-driving vehicles. Interest in Nvidia’s products and forecasts has surged as companies rush to adopt new AI technology. Huang detailed Nvidia’s products and strategy for over 90 minutes, highlighting partnerships with companies like Toyota Motor Corp. and MediaTek Inc. that saw their shares rise over 3%.
Before the decline on Tuesday, Nvidia’s stock had more than tripled in the past year, sparking optimism among Asian suppliers like Taiwan Semiconductor Manufacturing Co. and Hon Hai Precision Industry Co. about Nvidia’s potential.
During a separate event, Chief Financial Officer Colette Kress emphasized that the AI transition will continue to drive growth for the next decade and beyond. Nvidia sees significant growth opportunities in the future.
Huang also announced updates for gamers during his presentation. Nvidia is launching an update to its GeForce GPUs, leveraging the same Blackwell design used in its AI accelerators to enhance gaming experiences.
The flagship RTX 5090 model will be available later this month for $1,999, with more affordable options to follow. Nvidia’s data center operation has surpassed gaming as its primary revenue source, with plans to contribute over $100 billion this year.
Nvidia’s expansion into various industries, such as autonomous driving, has attracted major companies like Toyota as customers. Nvidia’s technology aims to transform industries worth $50 trillion, but challenges remain in developing software for robots and vehicles to handle real-world complexities safely.
Nvidia’s Cosmos technology enables the creation of video from text inputs, facilitating virtual training and reducing the need for costly real-world experiments. Nvidia is also collaborating with Uber Technologies Inc. to develop self-driving technology.
The company foresees mass-market carmakers adopting a single computer and operating system for their entire lineup, streamlining the use of Nvidia’s offerings. Nvidia has also introduced Project Digits, a desktop PC designed for AI developers, in partnership with MediaTek.
Nvidia’s collaboration with MediaTek aims to provide hardware capable of running large AI models efficiently. Project Digits is intended for developers and students working on AI projects.
Huang hinted at Nvidia’s broader interest in the PC market, suggesting potential future plans in the sector. Nvidia’s long-term vision is focused on leveraging AI technology to drive growth and innovation across industries.
–With assistance from Ed Ludlow.
(Updates shares starting in second paragraph.)
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