Nvidia: Dips (Buying Opportunity)NVIDIA’s stock is down approximately 8.5% overnight, reflecting a classic dynamic of “buy the rumor, sell the news” following CEO Jensen Huang’s keynote at CES 2025.
While showcasing a range of innovative advancements, the keynote failed to meet elevated market expectations, particularly with no mention of the next-generation Rubin GPU architecture expected to succeed the Blackwell platform.
Key Takeaways from CES 2025:
Blackwell-Based GeForce RTX 50-Series Launch
NVIDIA introduced the GeForce RTX 50-series, the next evolution in consumer GPUs built on the Blackwell architecture. Pricing for the flagship RTX 5090 was announced at $1,999, alongside a more accessible RTX 5070 at $549. These GPUs are projected to deliver performance improvements to retain NVIDIA's dominance in the gaming segment.
Strategic Push in AI
NVIDIA unveiled its Cosmos Platform, enabling the development of autonomous systems with synthetic training data, and introduced Agentic AI Blueprints targeting enterprise process automation. These initiatives reinforce NVIDIA’s strategy to capture value in the AI development ecosystem beyond hardware.
Expanding the Automotive Business
Partnerships with Toyota and Aurora were announced, leveraging NVIDIA’s DriveOS platform to power next-generation autonomous vehicles. Automotive remains a promising area of diversification for the company, though it is still a smaller contributor to revenue compared to core AI and gaming segments.
Project DIGITS: High-End AI Computing
NVIDIA announced the DIGITS platform, a high-performance PC targeted at AI researchers, priced at $3,000. By enabling local execution of AI models with up to 200 billion parameters, this product may appeal to research labs and enterprises looking to reduce reliance on cloud-based AI infrastructure.
Market Reaction
The absence of information on Rubin—widely anticipated as NVIDIA’s next breakthrough in GPU architecture—has disappointed investors.
This, coupled with a valuation near record highs, has triggered profit-taking.
While the overnight decline represents NVIDIA’s sharpest pullback since September 2024, this sell-off can be seen as consistent with its high-multiple growth profile and the market's tendency to reprice near key events.
NVIDIA's long-term outlook is still very strong, with continued leadership in gaming GPUs, AI infrastructure, and emerging automotive and edge computing segments.
For long-term investors, this pullback could present a compelling entry point, particularly as part of a dollar-cost averaging strategy.
