(Bloomberg) — Nvidia Corp. shares fell Tuesday after a wide-ranging product presentation by CEO Jensen Huang failed to propel the artificial intelligence chip maker to new heights.
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The stock fell 6.2% to $140.14 in New York, marking the biggest single-day drop in four months. Although Nvidia’s recent announcements have given an optimistic view of the company’s long-term prospects, there has not been as much near-term upside as some investors sought. “Nvidia’s announcements today are important, but long-term,” Stifel Financial Corp said in a report.
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Huang took the stage in a crowded arena in Las Vegas to kick off the CES trade show on Monday and introduce the new lineup, offering a vision of how artificial intelligence will spread throughout the economy. The company wants its products to be the heart of a future technology world with a billion human robots, 10 million automated factories, and 1.5 billion self-driving cars and trucks.
Interest in Nvidia’s products — and Hwang’s predictions — has been growing as companies rush to deploy new AI-powered computing equipment. The CEO outlined Nvidia’s products and strategy to his audience of hundreds for more than 90 minutes, including engagements with Toyota Motor Corp. and MediaTek Inc. Which led to their shares rising by more than 3%.
Before Tuesday’s pullback, Nvidia stock had more than tripled over the past 12 months. Asian suppliers, including Taiwan Semiconductor Manufacturing Co and Hon Hai Precision Industry Co, were also more optimistic about Nvidia’s prospects.
The shift to artificial intelligence will continue to drive growth over the next 10 years, Chief Financial Officer Colette Kress said during a separate event. “It will be with us for the next decade and beyond,” she said Tuesday during a JPMorgan Chase & Co. talk coinciding with CES. “We still have a lot of growth opportunities ahead for us.”
During Hwang’s presentation on Monday, he also delivered the news to his traditional audience: gamers. Nvidia is launching an update to its GeForce GPUs — short for graphics processing units — which are built with the same Blackwell design that the company uses in its AI accelerators, Huang said.
The company said the new GeForce 50 series cards will leverage Blackwell’s capabilities to create more realistic experiences for PC gamers. While traditional graphics chips build an image by calculating the shadow of each pixel in the image, the new technology will rely more on artificial intelligence to predict what the next frame should look like.
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