After an impressive surge, Nvidia’s stock is currently taking a moment to stabilize. On Tuesday, shares of Nvidia (NVDA) experienced a decline, falling as much as 6% before slightly recovering, with a 5.6% drop noted as of 3:13 p.m. ET.
The decrease in stock value seems to be reflective of broader market trends and comes after the company closed at a record high the previous day. Investors are also processing a series of product launches announced by the artificial intelligence (AI) leader during the opening keynote at CES, held in Las Vegas.
CEO Jensen Huang delivered a dynamic presentation, outlining several groundbreaking products, including:
– Project DIGITS: A compact AI supercomputer powered by Nvidia’s Grace Blackwell Superchip.
– Next-generation GeForce RTX 50 series gaming GPUs and laptops, leveraging AI technology and the Blackwell architecture.
– The Cosmos platform: Featuring new AI models aimed at enhancing capabilities for robots, autonomous vehicles, and computer vision applications.
– AI Blueprints for Agentic AI: A development tool designed to assist creators in building, testing, and deploying AI agents for various business functionalities.
While some announcements were less significant, the overall impact of Huang’s speech generated excitement for Nvidia’s future.
Following a brief decline of over 13% earlier this month, Nvidia has made a notable recovery, culminating in its record closing price on Monday. Analyst Dan Ives from Wedbush commented on the energetic tone of Huang’s address, likening it to a concert atmosphere. Despite Nvidia’s stock soaring by more than 900% over the past two years, Ives believes that there is still significant growth potential ahead. He estimates Nvidia’s market capitalization, currently around $3.5 trillion, could exceed $4 trillion and possibly reach up to $5 trillion within the next year to 18 months, indicating a potential upside of approximately 44%.
Moreover, Nvidia stock remains attractively priced at about 32 times its estimated earnings for fiscal 2026, beginning next month. This valuation supports the view that Nvidia stocks remain a strong investment opportunity.
In conclusion, while Nvidia’s stock may be experiencing a temporary dip, the company continues to innovate and expand its AI capabilities, suggesting a bright future for both its products and stock performance. As such, there remains a strong bullish sentiment around Nvidia, making it a compelling option for investors.