Nvidia’s (NVDA) shares tumbled Tuesday morning after rallying the previous day to close at an all-time high.
The chipmaker’s shares were down by more than 4% during late morning trading — a reverse after climbing 2.5% at the market open and setting a new intraday all-time high of $153.13.
The previous day, Nvidia’s shares climbed more than 3% to reach a record close of $149.43 per share — cents higher than its previous record close of $148.88 in early November. The chipmaker’s shares rallied Monday ahead of chief executive Jensen Huang’s keynote at the Consumer Electronics Show.
Huang announced a suite of artificial intelligence tools for AI agents and updates to the chipmaker’s robotics efforts at the annual Las Vegas trade show Monday night. The chip leader also unveiled its next generation RTX Blackwell GPUs for gaming ranging between $549 and $1,999.
To end the keynote, Huang announced Project DIGITS, a personal AI supercomputer that can run AI models with up to 200 billion parameters — more than OpenAI’s GPT-3.
The device, which is aimed toward AI researchers and developers, will be available from Nvidia and its partners in May, and starts at $3,000. The chipmaker designed the AI supercomputer with Taiwanese semiconductor company MediaTek. The chip company’s Taiwan-listed shares were up by 4.5% at the market close.
Ahead of Huang’s keynote, Bank of America (BAC) reiterated its “buy” rating on Nvidia in a note, with research analyst Vivek Arya describing CES as “a positive catalyst” for the chipmaker.
“[W]hile we don’t doubt NVDA’s capabilities, we are unsure as to when and how fast they can influence NVDA’s financials,” Arya said about the chipmaker’s robotics strategy.
In a note on Tuesday, Bank of America maintained its buy rating on its top pick, and Arya said Huang’s keynote highlighted the chipmaker’s “continued dominance in genAI compute and ecosystem.”
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