NVIDIA Corporation (NVDA.US) crashes! "Tech Spring Festival" does not see short-term positives, traders sell bullish options massively.

Investors sold a large number of call options on NVIDIA Corporation (NVDA.US) on Tuesday, as the stock fell after reaching its first record high since last November. Chris Murphy, Co-Head of Derivatives Strategy at Susquehanna International Group, said that in the U.S. stock market, about 200,000 call options with a strike price of $140 expiring on January 17, as well as 600,000 to 700,000 call options expiring on February 21 with strike prices ranging from $159 to $165, were mostly sold. The company had previously released a wide range of new product introductions, but failed to propel the AI chip manufacturer to new heights. CEO of NVIDIA Corporation, Jensen Huang, was scheduled to speak at the Consumer Electronics Show (CES) in Las Vegas on Monday night, where a series of new products were expected to be launched. In the days leading up to this event, there was a lot of buying interest in call options, but selling seems to be reversing this trend. NVIDIA Corporation's stock price fell by 6.2% on Tuesday to $140.14, erasing the 3.4% gain from Monday and marking the biggest single-day drop in four months. The trading price of NVIDIA Corporation returned to the level of last Thursday, with Murphy noting, "The February call options we highlighted on Friday and Monday are being massively sold, as well as the January call options expiring at around $140." Analysis indicates that while the latest announcements from NVIDIA Corporation have made people optimistic about the company's long-term prospects, the short-term upside may not be as great as some investors had hoped for. A report from Stifel Financial Corp. stated that the significance of NVIDIA Corporation's announcements is long-term. Some comments also mentioned that details on the company's most profitable business - chips used for training and running AI models - were relatively scarce, only mentioning that their Blackwell AI processor had entered full production. As of the time of writing, the total options volume reached 6.73 million, the highest since November 21. The change in implied volatility of February options highlights selling, with call options trading at a discount compared to put options, whereas on Monday the two were roughly in line. Brent Kochuba, founder of SpotGamma, stated, "The skew in NVIDIA Corporation's stock price increased significantly yesterday, indicating that call options were really bought high in the morning, meaning that people were really actively buying call options. Then we saw some of the most severe selling we've seen in the past 30 days." Jensen Huang unveils a series of new products, showing ambitious AI strategies On Monday, on the stage in Las Vegas, Jensen Huang delivered a keynote speech at the Consumer Electronics Show (CES), known as the "Tech Spring Festival." Huang unveiled a new lineup and presented a vision of how artificial intelligence will spread throughout the economy. The company hopes its products will become the core of the future tech world, targeting 1 billion humanoid Siasun Robot & Automation, 10 million automated factories, and 1.5 billion self-driving cars and trucks. As companies rush to deploy new AI computing devices, there is strong interest in NVIDIA Corporation's products and Jensen Huang's predictions. In his 90-minute speech, he introduced NVIDIA Corporation's products and strategies, including collaborations with Toyota Motor Corp. Sponsored ADR (TM.US) and MediaTek. Before the decline on Tuesday, NVIDIA Corporation's stock price had more than doubled in the past 12 months. During this period, Asian chip suppliers, including Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) and the parent company of Foxconn, saw surges in their stock prices due to optimism about NVIDIA Corporation's prospects. Colette Kress, CFO of NVIDIA Corporation, said in another event that the AI transformation will continue to drive growth for the next 10 years. On Tuesday, she stated in a conversation with J.P. Morgan, "It will be with us in the future for the next 10 years and even longer. We still have many growth opportunities in the future." AI gaming chips In Monday's presentation, Jensen Huang unveiled a series of new products, including a new GeForce 50 series graphics card for gaming PCs. NVIDIA Corporation stated that the new GeForce 50 series graphics card, based on the Blackwell design that is used in their AI accelerators, will create a more realistic experience for PC gamers. Traditional graphics chips construct images by calculating the shadows of each pixel in the image, while the new technology will rely more on artificial intelligence to predict the next frame image. The flagship RTX 5090 model will be launched later this month with a price of $1,999, followed by a slightly less powerful graphics card. The RTX 5070, priced at $549, will be released in February and will outperform the previous flagship model, the RTX 4090. NVIDIA Corporation stated that laptops using these chips will also have longer battery life. The company also mentioned that high-performance desktop users will not have to choose between a more responsive gaming experience and a more realistic gaming experience.Puedes ayudarme con mi tarea de matemticas, por favor?In 2022, games are still the biggest source of revenue for NVIDIA Corporation. Now, the chip manufacturer's data center business is much larger. Due to the company's accelerator chips being favored by the world's largest tech companies, the data center business is expected to contribute over $100 billion this year. NVIDIA Corporation's next step is to introduce hardware and software to more enterprises and government agencies to achieve revenue diversification. Autonomous Driving Huang Renxun announced that the world's largest car manufacturer, Toyota, is now a customer of NVIDIA Corporation's autonomous driving artificial intelligence products, and will use its Drive chips and software. NVIDIA Corporation will work with Toyota Motor Corp. to develop the next generation of autonomous driving vehicles, and its automotive business is expected to expand to $5 billion in the 2026 fiscal year. Huang Renxun said that this field is the next trillion-dollar market. Huang Renxun stated that Drive OS has become the first certified programmable artificial intelligence computer functional safety software, meeting the highest automotive safety standard ASIL-D. Huang Renxun also announced the manufacturers that NVIDIA Corporation is collaborating with in the automotive field, including Chinese car manufacturers such as BYD Company Limited, Ideal, Xiaomi, and Geek+. NVIDIA Corporation stated that expanding artificial intelligence to more physical worlds will change the $50 trillion industry. However, this will also bring challenges. Siasun Robot & Automation and cars will need software that can handle the complexity of real-life situations in a safe manner. Huang Renxun said that NVIDIA Corporation has created Nvidia Cosmos to help Siasun Robot & Automation become smarter and produce fully autonomous vehicles. Cosmos technology can create videos from inputs such as text. These videos then serve as the basis for virtual training, helping to reduce reliance on expensive and time-consuming real-world experiments. The generated videos can be searched and polished for repeated testing of important but uncommon events, such as a car encountering an emergency vehicle. NVIDIA Corporation is also collaborating with Uber Technologies, Inc. in the development of autonomous driving technology. Uber Technologies, Inc., which handles millions of trips every day, will provide a large amount of data for training artificial intelligence models. NVIDIA Corporation stated that mainstream car manufacturers will move towards using one computer and operating system in all models, rather than dividing systems by vehicle type. The company believes that this shift will lay the foundation for more widespread use of the chip design company's comprehensive products. To accelerate this process, NVIDIA Corporation has already obtained certification from government transportation safety organizations. AI Supercomputer Huang Renxun also teased NVIDIA Corporation's development of the world's smallest AI supercomputer. He stated that NVIDIA Corporation is developing a project named "Project Digits" that will be equipped with NVIDIA Corporation's super chip GB10. The super chip GB10, equipped in the $3000 Project Digits, is a combination of a central processing unit and a graphic semiconductor with large memory and fast connectivity. The idea is to provide hardware that can run very large artificial intelligence models for developers, which current laptops struggle to handle. This new machine, developed in cooperation with MediaTek, will run a version of the Linux operating system and is not designed for everyday use. Instead, they are intended to help artificial intelligence developers work locally in situations where connecting to the cloud or using traditional computers is impractical or impossible. NVIDIA Corporation's choice to have MediaTek help manufacture the main chip for Digits is due to MediaTek's expertise in manufacturing low-power semiconductors. When asked if Project Digits marks NVIDIA Corporation's desire to enter the personal computer market more broadly, Huang Renxun stated that this machine is designed for artificial intelligence developers and students. But he also hinted that NVIDIA Corporation has a greater interest in the industry.