CES 2025 – Announcements cause huge slide in NVIDIA stock

Investors concerns at the forefront

Following Jensen Huang’s highly anticipated keynote speech, shares in the Nvidia Corporation (NASDAQ : NVDA) fell sharply with the stock price down 7.5% at it’s low point with it finally ending the day down by 6.22%.

The tech giant’s CEO left a lot of investors wanting more from the speech despite announcements regarding the latest innovations. There were exciting announcements during the keynote where several new technologies were unveiled. Amongst these Huang spoke of the new GeForce RTX 50 series of chips for advanced gaming applications as well as the all-new COSMOS platform which marks a more advanced era directed towards fully autonomous vehicles as well as further advancements into robotics.

Even though NVIDIA continues to lead the way in the rapid development of artificial intelligence (AI) as well as in cutting edge advanced computing many analysts in this field have suggested that investors had become too expectant, in fact some say too greedy for more. It would appear that appetites are large for ambitious initiatives especially if they produce short term rapid growth.

One technology analyst Laura Jensen said, “The Cosmos platform is a bold step for NVIDIA, especially in its potential to revolutionize robotics, however, the market may have been looking for breakthroughs in AI chipsets or partnerships that deliver immediate revenue boosts.”

Tech Stocks weighed down by more far-reaching Market trends

Recent market trends have conspired against NVIDIA with Treasury yields at a long term high and the markets talking of sustained high inflation the keynote from Huang just didn’t quite deliver. A Tech sector sell off ensued and NVIDIA was caught in the crossfire. It wasn’t just NVIDIA which took a nosedive as almost all connected to either gaming or AI took a hit.

Market strategist Alan Burke said, “This was a perfect storm for NVIDIA, the combination of underwhelming investor sentiment post-CES and macroeconomic headwinds created a steep decline.”

Long Term Prospects and Predictions

Despite the falls the sentiment remains bullish with NVIDIA still a solid future prospect. Even though the reaction to the keynote was not a triumph there is no mistake that the company still leads the way in AI and Data centre applications.

Clara Morris an investment strategist said, “NVIDIA’s vision for the future is sound, the Cosmos platform and RTX 50 series are just the tip of the iceberg for their innovation pipeline. This stock remains a buy for those with a long-term horizon.”

Some projections for NVIDIA have shown that the company could be valued at $5 Billion in the next 18 months which when coupled with further AI advancements and strong demand within the computing sector could well become a reality.

The Numbers

The share values swung from a high of $153.71 to a $140.04 low for the day. The next earnings report from NVIDIA will be keenly monitored as well as the speed of the rollouts regarding all that was mentioned in the keynote speech of CES 2025.

Conclusion

I believe that although there has been a serious hit for the stock and $238 Billion wiped off the market cap (A serious event in any situation) optimism can justifiably be high for a strong rebound driven by its own innovation within the sector and it’s excellent leadership within key Tech sectors. Investors need to hang in there as the long term promised looks good.