Nvidia shares fall after hitting record high ahead of CES AI superchip debut

Nvidia ( NVDA ) stock fell more than 6% on Tuesday, a day after shares closed at record highs in anticipation of CEO Jensen Huang’s keynote at the tech industry’s annual CES trade show in Las Vegas.

Huang’s presentation Monday night provided a flurry of updates on upcoming Nvidia products, showing what’s next in the burgeoning market for artificial intelligence and other emerging technologies. Shares rose as much as 2.5% early Tuesday before reversing direction. The chipmaker was the Dow’s worst performer of the session.

Nvidia stock’s drop comes amid a broader decline in stocks on Tuesday after November job opening data came in mixed and separate economic data raised inflation concerns.

Nvidia stock is still up about 190% over the last year. Its updates at CES fueled more bullish takes on the stock.

Analysts at Stifel, Wedbush and Truist Securities reiterated their Buy ratings on the stock on Tuesday. On average, Wall Street analysts tracked by Yahoo Finance see Nvidia shares rising to $172.80 over the next 12 months.

“(T)he company continues to position itself more favorably — not just in the data center, but increasingly in all areas of the edge — from client computing to autonomous vehicles to robotics — supporting revenue growth and our Buy rating on the stock, ” Truist Securities analyst William Stein, who has a Buy rating on the stock, wrote in a note to investors Tuesday morning.

One of Nvidia’s most notable updates at the show: a new, pint-sized artificial intelligence superchip called the GB10 used in its (also new) client supercomputer.

The supercomputer – sized to fit on the average-sized desktop – is part of the Nvidia’s project DIGITS announced Monday, advertised to developers, researchers and students, and the device will be available in May for $3,000.

Nvidia also unveiled major updates to its robotics strategy. The chip giant debuted its Cosmos platform, which offers AI models for developing humanoid robots as well as autonomous vehicles.

Nvidia stock closed at a record high of $149.43 on Monday ahead of Huang’s keynote — eclipsing the previous record close of $148.88 reached on Nov. 7.

Wedbush analyst and Nvidia bull Dan Ives said he sees robotics and autonomous technology representing a $1 trillion market for the company. Huang put that number higher in his keynote, saying that autonomous driving technologies alone “will likely be the first multitrillion-dollar robotics industry.”

In addition, Nvidia showcased new Blackwell-generation gaming GPUs (graphics processing units) and applications for developers to launch their own custom AI agents. Yahoo Finance’s Dan Howley reported that Nvidia could debut a successor to its Blackwell-generation AI chips during its GTC conference in March.

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