Nvidia Stock (NVDA) Slips Alongside DLSS 5 Backlash

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Abstract generation in progress

Nvidia NVDA -0.09% ▼ stock slipped on Tuesday after the semiconductor company received backlash from its preview of DLSS 5, the next generation of its graphics upscaling technology. The company posted a breakdown of the new technology on its website and YouTube, showing how AI would be used to alter the graphics of video games. Unfortunately for Nvidia, gamers didn’t appreciate these changes.

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Here’s a quick roundup of some of the complaints and criticisms from the “NVIDIA DLSS 5 Reveal | Resident Evil Requiem” video on YouTube.

  • “So every character is gonna look like Ai uncanny nightmares.”

  • “Nvidia thought they were cooking with this.”

  • “So out of touch, they’re genuinely under the impression we want game characters to look AI-generated and our games to have no distinct art direction.”

  • “I cannot wait for the AI bubble to burst.”

  • “Haha they still can’t get any consistency, that was two completely different faces for Grace.”

It didn’t get much better for Nvidia on X, where its DLSS 5 announcement post also received criticism from plenty of users. Reddit users on the official Nvidia subreddit also weren’t kind to the company’s DLSS 5 reveal. All of this negativity is a bad sign for DLSS 5 and could be bad news for the video game industry if developers start to create games with this technology in mind.

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Nvidia Stock Movement Today

Nvidia stock was down 0.3% on Tuesday, and has fallen 2% year-to-date. Despite these drops, shares of NVDA were still up 58.73% over the past 12 months.

Nvidia’s DLSS 5 reveal was part of its larger GTC presentation. This was largely focused on AI, which has been a major driver of the company’s stock rally over the past year.

Is Nvidia Stock a Buy, Sell, or Hold?

Turning to Wall Street, the analysts’ consensus rating for Nvidia is Strong Buy, based on 39 Buy and one Hold rating over the past three months. With that comes an average NVDA stock price target of $274.46, representing a potential 49.96% upside for the shares.

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