
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.
The lesson for other companies is clear: know your audience, or risk losing them. Companies rolling out high-price products with marginal improvements need to prepare for scrutiny. Think about how Apple has long been criticized for releasing new “generations” of expensive phones with only incremental improvements instead of significant upgrades. Companies can’t just slap a price tag on a shiny new feature without being transparent about what customers are paying for. If the value isn’t obvious, or if the messaging misses the mark, trust evaporates fast.
Instead of relying on outdated assumptions about what customers want, businesses can lean on AI tools for real-time sentiment analysis and social listening. These technologies can dig into customer feedback, track emerging trends, and even predict audience reactions based on historical data. Companies can then adjust messaging—or even the product and pricing—to avoid tone-deaf launches that alienate their core demographics.
Hazy AI Aspirations
As mentioned earlier, the other critical misstep contributing to Nvidia’s stock drop was its handling of AI announcements at CES. The company failed to back up its ambitious claims with specific, near-term timelines. Instead, the presentations left investors grappling with unclear projections and uncertainty about when these innovations might yield tangible results.
The announcements ultimately came across as overly ambitious and frustratingly vague. CEO Jensen Huang’s remarks on quantum computing, describing breakthroughs as “two decades away,” only reinforced concerns that tangible results were far off. Such unclear communication erodes trust and raises doubts about whether Nvidia is prioritizing steady, sustainable growth or simply chasing flashy, speculative projects with no immediate return.
For companies facing similar scrutiny, clarity and credibility must take center stage. Big visions should always come with the specific communication of milestones and realistic timelines. Equally important is setting appropriate expectations—companies must ensure that messaging aligns with what their audience values most; whether that’s innovation, financial returns or practical usability. Engaging directly with key stakeholders, including investors and customers, can provide valuable insights into how to frame announcements. Failing to do so risks creating a perception of overpromising and underdelivering.
Events like CES don’t just showcase cutting-edge innovations: they also provide masterclasses in effective—or ineffective—communication. For PR professionals and companies alike, these events offer chances to analyze what resonates and what falls flat. Nvidia’s missteps serve as a stark reminder that knowing your audience isn’t just a best practice—it’s a business imperative.
Stamatis Astra is Co-Founder and Chief Business Officer of Intelligent Relations.