Despite macroeconomic concerns such as rising interest rates, analysts like Dan Ives remain optimistic about Nvidia's position in the AI revolution, noting its leadership in generative AI.

Bank of America maintained a 'buy' rating on Nvidia, viewing CES as a positive catalyst for the company despite uncertainties regarding its financial impact.

The recent stock decline was attributed to a widespread selloff in technology stocks, driven by rising U.S. government bond yields.

At the Consumer Electronics Show (CES) on January 6, CEO Jensen Huang unveiled the latest AI super chip and the GeForce RTX 50 series, aimed at enhancing gaming performance.

Nvidia's shares experienced a notable decline of 6.2% on January 7, 2025, following a record high of $149.43 the previous day, amidst a broader slump in tech and crypto stocks.

Despite the introduction of innovative AI chips and a powerful new supercomputer, Nvidia's stock fell to $140 as mixed U.S. jobs data influenced market sentiment.

Huang also introduced Project Digits, a personal AI supercomputer designed for researchers and students, featuring the GB10 Grace Blackwell Superchip, which can handle models with up to 200 billion parameters.

Huang emphasized the dawn of an 'era of physical AI' capable of reasoning and planning, indicating significant advancements in AI development.

Nvidia's revenue has surged nearly fivefold over the last five quarters, with Data Centre sales now accounting for almost 90% of total revenue, consistently reaching record highs.

The company's growth has been significantly driven by hyperscaler customers like Amazon, Microsoft, and Alphabet, which together represent 50% of its revenue.

Ives suggested that the market may be underestimating Nvidia's long-term impact, drawing parallels to the initial underestimation of the iPhone's potential.

Analysts continue to express optimism about Nvidia's performance, highlighting a 166% increase in share value over the past year, with little concern over the recent stock dip.