Nvidia’s stock dropped 6.2% on Tuesday, erasing $230 billion from its valuation after hitting a record high.
Market Impact
The tech giant’s fall contributed significantly to the Nasdaq’s 2% decline. Nvidia’s losses rippled across the tech sector.
CES 2025 Event Disappoints
Nvidia unveiled its next-gen gaming graphics cards at CES in Las Vegas. The reveal failed to excite investors.
CEO Speech Underwhelms
CEO Jensen Huang focused mainly on gaming advancements. He shared limited updates on Nvidia’s AI leadership and chip development.
Advanced AI Chip in Production
Huang confirmed that Nvidia’s Blackwell AI chip is now in full production. However, this did not sway market sentiment.
Nvidia’s Year-to-Date Performance
Despite the recent drop, Nvidia shares are up about 3% this year. Investors have slowed their pursuit of AI-driven gains.
Historical Context
Last year, Nvidia’s stock nearly tripled as investors sought high returns in AI. Today, its market cap stands at $3.5 trillion.
Key Comparisons
Nvidia is the second-largest corporation globally, trailing only Apple, valued at $3.7 trillion.
Key Points:
- Nvidia stock dropped 6.2%, erasing $230 billion in value.
- Investors were unimpressed by CES 2025 announcements.
- CEO Huang’s speech lacked significant AI updates.
- Nvidia remains a key player in tech with a $3.5 trillion valuation.
Nvidia’s recent plunge underscores the challenges of maintaining momentum in a high-stakes market. Investors will closely watch future announcements for AI and gaming breakthroughs.
SOURCE: Trading View
