Nvidia faced a make-or-break moment today as its leather-clad CEO Jensen Huang got on stage at the annual GPU Technology Conference in San Jose, CA, to talk about where the biggest name in AI is heading next.
Huang, aka “AI Jesus,” delivered his two-hour keynote to a rapt audience "without a net" (sans script or teleprompter), and did not disappoint. In addition to elaborating on Nvidia’s new Blackwell Ultra chip and its next-gen GPU platform Rubin, he sparked a round of applause announcing a new partnership with General Motors to build self-driving cars. “The time for autonomous vehicles has arrived,” he declared.
While it’s a bit early to forecast the long-term impact of these big plans, what’s clear to all is that a lot was riding on today. Nvidia, the undisputed AI leader for years, has been losing steam at the exact moment that Chinese competitors seem to be catching up.
Nvidia shares took a gut-punch in January when DeepSeek unveiled its R1 reasoning model, claiming its AI processing was faster, smarter, and way, way cheaper than American models like ChatGPT. Since then, a slew of other China-based chatbots—Yuanbao, Manus, QwQ-32B—have crowded into this competitive space.
Since January 1, Nvidia shares are down 16.54%, including today's 3.43% drop.
Nvidia needs a reboot
Nvidia’s meteoric rise and recent stumble are a reminder that tech dominance can change almost overnight.
“Nvidia’s been riding the AI wave, but the past few months have shown just how quickly market sentiment can shift,” wrote Todd Ruoff, CEO of Autonomys Network. “The company has a history of bouncing back by pushing the limits of AI and GPU tech, so the real question is whether today’s GTC event can restore confidence. Are they maintaining dominance or just reacting to competition?”
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If history can provide any kind of crystal ball, Nvidia could still regain its footing as it adjusts to the new landscape.
“In the short term, Nvidia's stock price may continue to experience volatility, especially as investors react to the announcements made during the GTC event,” predicted Jake Falcon at Falcon Wealth Advisors. “However, in the long term, Nvidia's strong position in the AI market and its history of innovation suggest that the company has the potential to recover and grow.”
And let’s not forget that AI is still in its infancy, with plenty of room to grow for all.
“The lower-cost AI models coming out of China courtesy of DeepSeek (and others) do provide a headwind,” Chris MacDonald wrote on 24/7 Wall Street. “However, Nvidia's pricing power should remain strong domestically as more companies ramp up their compute power in the years to come.”
In other words, this year’s GTC may have been packed with 25,000 attendees and another 300,000 virtually, but it may need to find a bigger venue next year.—JD