NVIDIA, the leading stock in the AI chip industry, took a wild ride in a single day. On Tuesday, the company’s shares plunged more than 6% on the New York Stock Exchange, pushing its market capitalization below $350 billion. This sharp decline came just a day after the stock hit an all-time high of $149.43 on November 7th last year.
The catalyst for this dramatic shift was CEO Jensen Huang’s keynote speech at CES 2025, held in Las Vegas on January 6th. While market expectations had driven NVIDIA’s stock to hit an all-time high before his speech, the market disappointment led to the decline immediately after his speech.
However, some U.S. investors warned against getting fooled by the fall in NVIDIA’s stock price.
CNBC pointed out that NVIDIA’s explosive growth in recent years has been primarily fueled by its data center business. During his keynote, Huang painted a broader picture of NVIDIA’s future, expanding well beyond data centers.
Wall Street investment analysts also predicted that Nvidia’s stock price would rise to an average of $172.80 over the next 12 months.
William Stein, an analyst at Truist Securities, emphasized in a note to investors that NVIDIA has secured a strong position across multiple sectors, including data centers, client computing, autonomous vehicles, and robotics, which he believes support revenue growth and “buy” ratings for the stock.
At CES 2025, NVIDIA unveiled the GB10, a compact AI super chip designed for client supercomputers, and introduced its strategy for robotics.
Daniel Ives, an analyst at Wedbush Securities, stated that robotics and autonomous driving technologies are poised to form a $1 trillion market. He noted that Huang’s keynote speech suggested more substantial growth potential.
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