Nvidia's Stock Dips Despite Positive CES Announcements

2025-01-08 companies

Las Vegas, Tuesday, 7 January 2025.
Nvidia’s stock dropped over 4% despite a promising CES 2025 presentation by CEO Jensen Huang, highlighting new products and partnerships, which suggests investor skepticism or unmet expectations.

Product Announcements and Market Response

During his 90-minute keynote address at CES 2025 on January 5, NVIDIA CEO Jensen Huang unveiled several significant products to an audience of over 6,000 at the Michelob Ultra Arena in Las Vegas [1][5]. The centerpiece announcement was the new GeForce RTX 50 Series GPUs, featuring an impressive 92 billion transistors and capable of delivering 3,352 trillion AI operations per second [1]. Despite these technological advances, NVIDIA’s stock (NVDA) experienced a notable decline, falling from 153.13 to 142.47, representing a -6.961% drop on January 6, 2025 [1].

New Product Timeline and Specifications

NVIDIA has set a clear timeline for its new product releases, with the RTX 50 series desktop GPUs scheduled for availability starting January 30, 2025, followed by notebook computers featuring the new GPUs in March 2025 [1]. The flagship RTX 5090 is priced at $1,999, with the RTX 5080 at $999, RTX 5070 Ti at $749, and RTX 5070 at $549 [7]. The company also announced Project DIGITS, powered by the GB10 Grace Blackwell Superchip, which is capable of handling AI models up to 200 billion parameters [2].

Strategic Partnerships and Industry Impact

NVIDIA revealed significant partnerships with major industry players, including Toyota for next-generation vehicle development using NVIDIA DRIVE AGX and DriveOS [5]. The company also announced collaborations with Aurora Innovation, Arbe Robotics, and Innoviz Technologies [1]. Analysts remain optimistic about NVIDIA’s position, with Hans Mosesmann from Rosenblatt Securities noting that ‘NVIDIA continues to enhance and develop both AI hardware and software offerings that will help maintain its AI leadership’ [1]. Daniel Ives from Wedbush Securities described the presentation as a major ‘flex the muscles’ moment for NVIDIA [1].

Future Outlook and Market Implications

The stock price movement suggests a potential ‘sell the news’ scenario, despite positive analyst coverage and technological achievements [1]. NVIDIA’s expansion into cloud gaming through GeForce NOW, with new support announced for Steam Deck, Apple Vision Pro, and Meta Quest devices [3], demonstrates the company’s commitment to diversifying its product ecosystem. The company’s focus on AI advancement is particularly evident in its new Cosmos platform, which enhances physical AI capabilities for robotics and autonomous vehicles [5].

Sources

CES 2025 Nvidia stock