Nvidia Stock Jumps Ahead of CEO Jensen Huang's CES Keynote.
Nvidia (NVDA) shares surged nearly 3% on Monday morning in anticipation of CEO Jensen Huang’s keynote presentation at the annual Consumer Electronics Show (CES) in Las Vegas.
As Wall Street analysts converge in Las Vegas to engage with executives from leading technology firms, the spotlight is firmly on the AI chip manufacturer. Nvidia is known for making significant product announcements during the CES trade show, such as the introduction of new desktop graphics chips for gaming and artificial intelligence last year. Huang's remarks are anticipated to provide investors with insights into the future direction of the artificial intelligence powerhouse and the rapidly expanding AI market. Huang is scheduled to present his keynote at 6:20 PM PST on Monday, which will be streamed live on platforms including Facebook, YouTube, and LinkedIn.
This address arrives as investors are keenly awaiting the launch of Nvidia’s latest Blackwell AI chips. Analysts have indicated that these chips could initiate a substantial new wave of demand for the company’s offerings, despite concerns regarding a potential slowdown in AI investments. Following a design issue that delayed the Blackwell rollout and circulating rumors about overheating in servers utilizing these chips, Nvidia confirmed during its November earnings call that production of Blackwell is increasing this quarter, with shipments to customers occurring sooner than anticipated. Stifel analyst Ruben Roy has posited that the Blackwell AI chips could represent a $100 billion market opportunity for Nvidia. The rise in Nvidia's stock on Monday builds on the gains from the previous week, during which the chipmaker led the so-called Magnificent Seven tech stocks in recovering from a disappointing conclusion to 2024.
Jen-Hsun Huang (Jensen Huang) NVIDIA's Founder, President and CEO.
In a further positive development for Nvidia's stock, Truist Securities analyst William Stein indicated in a note on Monday that he anticipates the company will unveil a standalone CPU, or central processing unit, at CES. This CPU would serve as the "brain" of a computer, separate from Nvidia's Hopper and Blackwell GPUs, which are graphics processing units. Stein has previously mentioned that such an announcement could potentially create an additional market opportunity valued at $35 billion for the company.
The chip industry in 2025 is poised for continued growth, driven by the expanding demand for AI, autonomous vehicles, and next-gen computing. As companies like Nvidia lead innovation with advanced AI chips, semiconductor manufacturers will likely face supply chain challenges and competition. The global push for more sustainable production methods, coupled with government incentives, will shape the industry's future landscape. However, potential disruptions from geopolitical tensions and technological limitations may pose risks. Overall, 2025 promises significant advancements, positioning the semiconductor sector as a critical player in the ongoing digital transformation across industries.
