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Nvidia stock briefly hit a new record Tuesday following an attention-grabbing speech from billionaire leader Jensen Huang, but surprisingly quickly reversed to a steep daily decline, leading to broader tech stocks. This was an unexpectedly large drop.
Nvidia CEO Jensen Huang will speak at CES on Monday night.
AFP (via Getty Images)
important facts
Nvidia stock rose as much as 2.5% to hit an intraday high of $153 shortly after the market opened following Huang’s keynote Monday night at the CES 2025 conference, but the broader technology market It turned negative as trading progressed amid the decline. .
Nvidia fell more than 6% to $140.14 by close, making Tuesday the artificial intelligence giant’s worst day on Wall Street since Sept. 3.
Nvidia’s downturn, which wiped out more than $220 billion of the semiconductor chip designer’s market value, weighed on stock indexes.
The S&P 500 fell 1.1% and the tech-heavy Nasdaq fell 1.9%, with losses related to growing investor concerns about U.S. fiscal and monetary policy.
In addition to Nvidia, shares of government contractor Palantir and electric and self-driving car company Tesla, AI-focused companies that have soared in recent months, also fell 8% each on Tuesday, among other notable declines. and fell 4%.
Main background
Nvidia’s decline comes as a result of overwhelming response from Wall Street analysts to talks that focused primarily on Nvidia’s efforts in robotics, or physical AI, in addition to advances in graphics processing units used in gaming. This happened despite the positive response. Nvidia “continues to enhance and develop both its AI hardware and software offerings to help maintain its AI leadership as the market moves toward physical AI,” Rosenblatt analysts said Monday. Hans Mosesmann said in a note to clients. Huang’s talk also revealed a variety of new or enhanced partnerships between Nvidia and other major companies. These include naming data storage company Micron as a memory partner for Nvidia’s gaming GPUs, and three deals in perhaps the most obvious application of physical technology: autonomous driving. love. Huang said Nvidia would supply semiconductor chips for Toyota’s driver-assistance program and technology to power Colorado-based Aurora’s self-driving trucks, while ride-hailing service Uber’s It said it will use Nvidia’s Cosmos physics AI platform to power its company. Initiatives for autonomous driving. “At a minimum, these announcements highlight the company’s ability to innovate at industry-leading speed across hardware and software, as well as its robust partner and customer ecosystem,” Goldman Sachs analysts said. Toshiya Hari pointed out. Bank of America analysts led by Vivek Arya said in a Tuesday note that Nvidia will “maintain genAI’s computing and ecosystem leadership and rapidly expand from cloud to enterprise and consumer.” “I am,” he emphasized.
important quotes
“The ChatGPT moment in general robotics is just around the corner,” Huang declared on Monday, referring to the 2022 release of OpenAI’s ChatGPT chatbot, which has sparked intense public interest in generative AI. did.
tangent
Nvidia is the undisputed leader in designing the hardware and software architecture needed to power advanced AI, and its non-automotive customers include Amazon and Microsoft. Nvidia, long known for its work on video game graphics, burst onto the national stage as its generative AI caught the attention of the public and Wall Street. Nvidia’s stock price has risen more than 2,000% in the past five years.
