Nvidia tanks despite slew of partnership announcements at CES

• Nvidia stock falls more than 5% on Tuesday.
• At CES 2025, Nvidia unveils new GeForce GPU for gaming.
• Autonomous vehicle partnerships sprout up with Aurora, Uber.
• NVDA stock finds support near 50-day moving average.

 

Nvidia (NVDA) stock is plunging on Tuesday after the mega cap semiconductor dashed 3.4% higher to start the week. NVDA stock is off 5.3% at the time of writing. 

This appears to be a simple case of investors taking profits off the table ahead of President-elect Trump’s inauguration and following strong labor market data that might forestall the Federal Reserve (Fed) from cutting interest rates.

The Dow Jones Industrial Average (DJIA) is in the same place as it was on Monday, sinking about 0.15% by noon on Tuesday. The Dow includes Nvidia in its 30-stock index. Meanwhile, the NASDAQ has reversed itself from Monday, sinking more than 1.5%.

The JOLTs Job Openings survey on Tuesday revealed that available jobs jumped in November from the prior month’s upwardly revised 7.839 million figure to 8.098 million. This strength in the labor market might put upward pressure on wages, raising inflation and making it less necessary for the Fed to cut interest rates at its next meeting on January 29. The CME Group’s odds of a hold decision rose 4 percentage points to 95%. A hold at the March meeting also saw its odds rise by a similar level to 61%. US Purchasing Managers Index (PMI) data likewise showed an improving economy.

Nvidia stock news

Investors choosing to take profits is rather interesting since Nvidia has begun this week with too many announcements to count. This was a product of the 2025 Consumer Electronics Show (CES).

First, there’s Logitech’s (LOGI) announcement of an Nvidia-devised AI assistant to help customers on its gaming platform. The AI agent can help streamers as a live host during game streams or as a producer or technical assistant. Second, Innoviz Technologies (INVZ) used this week’s CES 2025 conference to announce its software for autonomous driving applications, which is undergirded by Nvidia’s DRIVE AGX Orin platform.

Then there’s the company’s GeForce NOW gaming cloud platform, which will now work with Apple’s (AAPL) Vision Pro virtual reality headset, as well as Meta Platforms’ (META) Quest3 goggles.

Aurora (AUR) also unveiled its driverless truck platform partnership with Nvidia, which uses the latter’s DRIVE Thor system-on-a-chip and DriveOS for autonomous driving. Aurora has a contract to build autonomous trucks with Germany’s Continental Aktiengesellschaft. The trucks are set to enter commercial production in 2027.

CEO Jensen Huang unveiled Nvidia’s newest gaming GPU, the GeForce RTX 50, at the CES, as well. It comes with a much lower price tag of $549, about a third the price of its predecessor, which should help it grow volume compared with the competition from Advanced Micro Devices (AMD).

Lastly, Uber (UBER) said it is using Nvidia’s Cosmos and DGX Cloud systems to power its next-generation autonomous driving technology stack.

Nvidia stock forecast

Nvidia shot down to the 50-day Simple Moving Average (SMA) on Tuesday despite reaching a new all-time high at $153.13 at the start of the session. This means that despite the intraday slump, Nvidia stock is still poised for further upside. The stock will need to break below the 100-day SMA at $132 to initiate any real downtrend, which is unlikely. Below there lies the long-term ascending bottom trendline, which stretches from $110 to $122.

Simply put, most retail traders will view Tuesday's sell-off as an opportunity for entry.

NVDA daily stock chart