Nvidia’s stock dropped by 6.2% to $140.14 after CEO Jensen Huang’s big presentation at the CES trade show didn’t meet investors’ high expectations. Although Nvidia shared exciting news about its future plans, investors were hoping for quicker gains. Stifel Financial noted that the announcements are important but will take time to show results.
Huang, speaking to a packed audience in Las Vegas, introduced new products and a vision for AI in our lives, including a billion robots, automated factories, and a lot of self-driving cars. Many companies are eager to use Nvidia’s technology, which has boosted interest in its products significantly.
Before this decline, Nvidia’s stock had more than tripled over the past year. Suppliers in Asia also saw gains due to optimism around Nvidia’s success. The company’s CFO, Colette Kress, stated that the AI growth will last for the next ten years, showing there’s still a lot of room for growth.
During the presentation, Huang also revealed updates for gamers. Nvidia will launch new GeForce GPUs called the 50 series, built on the same technology used in its AI products. The new RTX 5090 model will cost $1,999 and offers better experiences for gamers.
Nvidia has shifted from relying on gaming for sales to focusing on its data center, where it expects $100 billion this year. The company also announced that Toyota will use its AI technology for self-driving cars, which boosted Toyota’s stock.
Nvidia’s goal is to integrate AI into many industries, which could change businesses worth $50 trillion. However, this also comes with new challenges as robots must use software that works well in complicated real-life situations. Huang mentioned that Nvidia has created a technology called Cosmos to help make robots and self-driving cars smarter.
Nvidia is also developing a new desktop called Project Digits, which costs $3,000. This PC will support big AI models and is made to help developers create AI software. Nvidia partnered with MediaTek to make the chip for Project Digits.
When asked if this means Nvidia wants to get into the PC market, Huang hinted that they have bigger plans for it but didn’t provide full details.
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