Nvidia Tumbles 5% After Unveiling $2,000 Power-Hungry RTX 5090 GPU

Nvidia Faces Market Backlash Following RTX 50-Series GPU Launch at CES 2025

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Jan 07, 2025
Summary
  • The launch of Nvidia's RTX 50-Series GPUs raises power consumption and pricing concerns, triggering a stock decline.
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Nvidia (NVDA, Financial) shares saw a major sell-off on Tuesday after rallying well on Monday. Shares in NVDA fell 5% on Tuesday after the highly anticipated GeForce RTX 50 series GPUs were revealed at CES 2025. The dip aside, Nvidia's latest offerings, including the flagship RTX 5090 for $2,000, showcase the company's continued power in high-performance gaming and AI hardware.

Jensen Huang, CEO, took the stage to unveil the RTX 50 series of GPUs, touting the immense power and innovation behind this GPU. The RTX 5090, billed as a "power hog," gets a recommended 1kW power supply and claims to deliver unmatched performance. DLSS allows advancements like the introduction of RTX Neural Shaders, and they are looking to take visual gaming and redefine it by using machine learning to optimize textures and free up processing resources.

It comes as Nvidia looks to offer both gaming enthusiasts and the increasing popularity of hardware designed for AI. But that dropped stock was also perhaps a sign of market sentiment that was cautious, and somewhat troubled by potential pricing and energy consumption issues.

Despite them being concerns, Nvidia is putting itself at the front of the AI drive tech landscape. Not just gaming, the RTX 50-series aims to be applicable across machine learning and data intensive computing in line with the long term growth narrative of the company in AI.

The latest release from Nvidia could help cement the company's place at the forefront of the AI race, but investors will certainly be expecting a bullish reception by the market and robust adoption and earnings impact in the next quarters.

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