NVIDIA made a stunning appearance at the Consumer Technology Industry "Spring Festival" CES this week, but it seemed unable to impress stock market investors, as its stock price recorded the worst performance in four months.

On January 7th, Tuesday, Eastern Time, NVIDIA's stock opened high and initially rose nearly 2.5%, but then fell sharply. Less than half an hour after the market opened, it turned downward, and after that continued to decline. When the U.S. stock market refreshed its daily low towards the end of the day, it had fallen 6.3% intra-day, eventually closing down 6.2%, marking the largest single-day drop since September 3, 2024, and fell below the closing high set on the third trading day of consecutive gains on Monday.

Before this, NVIDIA CEO Jensen Huang had just delivered a keynote speech at the CES conference on Monday to more than 6,000 attendees, launching a series of new products and technologies, including but not limited to the Blackwell architecture-based GPU RTX 5090, the world's smallest personal AI supercomputer Project Digits, while showcasing the Agentic AI with "Teat-Time Scaling" functionality, and has initiated a "Physical AI" era, introducing the world's first foundational model designed to understand the physical world, Cosmos, stating that physical AI will fundamentally change the $50 trillion manufacturing and logistics industry.

It seems that NVIDIA brought a series of dazzling demonstrations and that it will have a profound revolutionary impact on some fields. So why did NVIDIA's stock plummet on Tuesday?

Some commentators believe that the latest announcements from NVIDIA present an optimistic outlook for the company's long-term prospects, but the short-term upside potential is not as great as some investors had hoped, failing to meet investors' expectations for short-term bullish information.

A report from Stifel Financial Corp stated that the announcements made by NVIDIA on Monday were significant, but they are more relevant in the long term.

There are also comments stating that Jensen Huang's keynote speech at CES on Monday provided relatively few details about the company's most profitable business—chips used to train and run AI models—only mentioning that its Blackwell AI processor has fully entered production.

Benchmark Analyst Cody Acree wrote in a report:

Many investors are hoping for more specific progress updates on Blackwell [AI Chip] and some information regarding the progress of the company's next-generation GPU [graphics processing unit] platform, Rubin.

Other evaluations point out that Jensen Huang's speech on Monday evening local time was highly anticipated, and NVIDIA's stock performance on Tuesday resembled a classic example of "buy the rumor, sell the news," indicating that investors should focus on the long term rather than being short-sighted.

Analysts continue to remain Bullish.

Despite the significant drop in stock price on Tuesday, some analysts remained Bullish on NVIDIA's future performance following the CES presentation on Monday.

Analyst Hans Mosesmann from Rosenblatt Securities reiterated a Buy rating on NVIDIA with a Target Price of $220. This target implies that he expects NVIDIA's stock price to rise more than 47% from the historical closing high it achieved on Monday.

Mosesmann stated in a report sent to clients: "Our main conclusion is that NVIDIA will continue to enhance and develop AI Hardware and Software products, which will help to maintain its AI leadership position as the market transitions to Physical AI."

Benchmark Analyst Acree rated NVIDIA Stocks as "Buy", with a Target Price of $190, which represents a 27% increase compared to Monday's closing price.

Wedbush Analyst Daniel Ives stated in his Research Reports that Jensen Huang demonstrated how NVIDIA will expand its "huge CSI Leading Technology Index", marking an important moment for NVIDIA to "show strength". "After Monday evening's event, we are more optimistic about NVIDIA's entire AI revolution."

"The market for robots and autonomous driving technologies alone represents another $1 trillion incremental market opportunity that NVIDIA can tap into in the coming years, indicating that we believe the company's Market Cap will exceed $4 trillion and ultimately may reach a Market Cap of $5 trillion within the next 12 to 18 months," Ives wrote in the Research Reports.

Bank of America Analyst Vivek Arya maintained a "Preferred" Buy rating for NVIDIA Stocks. Arya stated in the client report that NVIDIA demonstrated its "sustained AI dominance in Hardware and Software, expanding its reach from the cloud to enterprises and Consumers."