Following a remarkable year for Nvidia in the stock market, a single CES 2025 keynote led to a significant drop in the company's share price.
A Successful Year and Sharp Decline
2024 was an outstanding year for Nvidia Corporation: the company experienced impressive 118% growth in the stock market, surpassing Apple in November 2024 to become the world's most valuable company. However, the new year brought challenges. After reaching an all-time high of $149.93 on January 6, 2025, shares quickly declined by 6.2% the next day. This volatility is linked to a shift in investor confidence.
Jensen Huang's Presentation
Expectations were high for Nvidia's announcements about their AI and robotics advancements during CES. However, Jensen Huang focused on the GeForce RTX 50-series gaming chips based on the Blackwell architecture. These GPUs, set to launch in March, will be available in computers priced between $550 and $2,000. Huang's lack of concrete short-term updates on AI and robotics progress left investors dissatisfied.
Market Ripple Effect
While Nvidia's shares were falling, other sector companies experienced gains. Micron Technology Inc. saw a 10% rise on January 6, and Aurora Innovation revealed a long-term partnership with Nvidia and Continental, boosting its shares by 35%. Despite the drop, analysts remain optimistic about Nvidia's prospects.
Nvidia's stock decline following Jensen Huang's CES 2025 keynote appears to be a temporary blip, with analysts maintaining confidence in the company's future. The market response demonstrated investor readiness to react swiftly to successful strategy shifts and partnerships.
