Nvidia Finds Key Level Support After CES 'Sideshow'; Is Nvidia A Buy Now?

Nvidia (NVDA) stock found support at a crucial level after a brief retreat following CEO Jensen Huang's keynote address at CES 2025. The stock hit an all-time high of $153.13 after the opening bell on Tuesday, January 7, 2025, but then retreated to close at $141.48, down 5.3% from the day's high. Analysts from Benchmark, Bank of America, and Rosenblatt Securities praised Nvidia's AI dominance and the potential of its new products, but the stock's retreat suggests that investors may have been expecting more concrete progress updates on the ramp of Blackwell and its next-generation GPU platform.



Nvidia's stock performance has been influenced by recent CES announcements, particularly the unveiling of the GeForce RTX 50 Series GPUs and the introduction of the Blackwell AI processor. The stock hit an all-time high of $153.13 after the opening bell on Tuesday, January 7, 2025, following CEO Jensen Huang's keynote address at CES 2025. However, the stock retreated later in the day, closing at $141.48, down 5.3% from the day's high. Analysts from Benchmark, Bank of America, and Rosenblatt Securities praised Nvidia's AI dominance and the potential of its new products, but the stock's retreat suggests that investors may have been expecting more concrete progress updates on the ramp of Blackwell and its next-generation GPU platform.



Nvidia's stock price is primarily driven by its strong performance in the AI and gaming sectors, as well as its leadership in the semiconductor industry. Here's how these factors relate to the company's earnings:

1. AI Market Growth: Nvidia's earnings have significantly benefited from the rapid growth of the AI market. The company's GPUs and platforms are widely used in AI applications, and its AI-specific products, such as the NVIDIA DRIVE platform for autonomous vehicles and the NVIDIA Isaac AI robotics platform, have contributed to its revenue growth. Huang's keynote at CES 2025 highlighted the company's advancements in AI, including the launch of the NVIDIA Cosmos platform for physical AI and the introduction of the NVIDIA Blackwell GeForce RTX 50 Series GPUs for gaming and AI applications.
2. Gaming Segment: Nvidia's gaming segment, which includes its GeForce GPUs, has been a significant driver of the company's earnings. The company's GPUs are widely used in gaming, and its latest GPUs, such as the GeForce RTX 50 Series, have been well-received by gamers and developers. The gaming segment's strong performance has contributed to Nvidia's overall earnings growth.
3. Semiconductor Industry Leadership: Nvidia's leadership in the semiconductor industry has also contributed to its stock price performance. The company's GPUs are widely used in various industries, including AI, gaming, and data centers. Its strong market position and technological advancements have allowed it to maintain its leadership in the semiconductor industry, driving its earnings growth.

In summary, Nvidia's stock price is primarily driven by its strong performance in the AI and gaming sectors, as well as its leadership in the semiconductor industry. These factors have contributed to the company's earnings growth and have been highlighted in Huang's keynote at CES 2025. However, investors should remain cautious and monitor key support levels around $140 and $130, as well as overhead resistance around $150 and $225.