Nvidia's stock price fell more than 6% on Tuesday, just a day after the company announced its next-generation AI chips and reached an all-time high. This decline was partly influenced by a surge in U.S. Treasury yields, leading to a broader sell-off of tech stocks. Nonetheless, Nvidia remains the strongest performer among the so-called "Super Seven" tech giants, with its stock price rising 185% over the past year and more than 900% over the past two years. As artificial intelligence continues to thrive, Nvidia has become the largest beneficiary, with its revenue nearly quintupling over the last five quarters, and data center sales accounting for nearly 90% of its total revenue.
At the International Consumer Electronics Show (CES) in Las Vegas, Nvidia CEO Jensen Huang unveiled the latest GeForce RTX 50 series graphics cards. These cards are based on the new Blackwell architecture and are designed to enhance gaming performance and frame rates. However, the gaming segment only accounts for 9% of Nvidia's total revenue, showing a decline in market focus compared to its previous dominant share during the pandemic.
In addition to gaming graphics cards, Nvidia announced "Project Digits," a personal AI supercomputer aimed at AI researchers, data scientists, and students. This project is based on the new GB10 Grace Blackwell superchip, capable of running models with up to 200 billion parameters, and aims to elevate the portability of high-performance computing devices to new heights. This system is set to launch in May with a starting price of $3,000, expected to attract developers seeking flexible work solutions.
Nvidia's revenue has significantly increased over the past two years, largely driven by major cloud computing customers including Amazon, Microsoft, and Google. In an earnings call in October, Jensen Huang emphasized that the AI industry is "huge and diverse," pointing out that Nvidia's strategy is to extend its products across various sectors, including consumer internet, automotive, and healthcare, not just limited to cloud computing.
Looking ahead, Nvidia also aims to expand its product influence in areas such as robotics, self-driving cars, and AI development tools. Analyst Josh Gibert believes that Nvidia continues to maintain strong growth momentum, with Jensen Huang clearly outlining the future product roadmap, suggesting that the company's performance is unlikely to slow down, with expectations for next February's earnings report to reflect this.
