Nvidia stock dropped 6% due to market weakness and reaching a record high

From Nasdaq: 2025-01-07 15:42:12

Shares of Nvidia (NASDAQ: NVDA) dropped 6% on Tuesday, with the stock down 5.6% by mid-afternoon. The decline was attributed to overall market weakness and a pause after reaching a new record high. Investors are also digesting product announcements from the AI chipmaker at CES in Las Vegas.

Nvidia CEO Jensen Huang unveiled several new products at CES, including Project DIGITS, next-gen GeForce RTX 50 series GPUs, and AI Blueprints for Agentic AI. Despite a recent correction, Nvidia stock hit a new all-time high on Monday, with Wedbush analyst Dan Ives predicting potential upside of 44%.

Nvidia stock, currently trading at 32 times its estimated earnings for fiscal 2026, is seen as a buy by analysts. The Motley Fool’s Stock Advisor team did not include Nvidia in their list of top 10 stocks to buy now, but Nvidia remains an attractive investment opportunity according to historical performance and future growth potential.



Read more at Nasdaq: Why Nvidia Stock Slumped Tuesday Morning