Nvidia has seen tremendous growth in its stock value over the past year, driven by its advancements in AI chips and its dominant role in supplying GPUs for gaming. However, at the recent Consumer Electronics Show (CES) in Las Vegas, the company made two significant missteps: alienating its core gaming audience with a pricey, power-hungry new GPU, and frustrating investors by delivering vague, overly ambitious updates on its AI initiatives without providing concrete timelines or measurable progress. These missteps—one rooted in disappointing product expectations, the other in a lack of clarity about the company’s near-term goals—contributed to a six percent drop in Nvidia’s stock. What went wrong, and what can other companies learn from Nvidia’s miscalculations at CES?

Too Much Money and Energy

Nvidia’s gaming audience had been eagerly awaiting the development of the RTX 5090 GPU, which would purportedly offer significant improvements in gameplay graphics. But gamers were displeased to hear that the GPU would cost them $2000, a significant price increase over the previous generation. Gamers seemed to agree that the promised performance enhancements didn’t justify the price increase. Not only that, the GPU would require a lot more energy than other options, up to 28 percent more. Many gamers’ hardware would be unable to handle these new energy requirements.

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Source: https://www.prnewsonline.com/nvidias-ces-announcements-resulted-in-a-six-percent-stock-drop-why/