Nvidia Stock Hits Record High Ahead of CES Keynote
Nvidia's (NVDA) stock closed at a record high on Monday, with shares rising over 3% to $149.43 per share, surpassing its previous closing price of $148.88 per share on November 7, 2024. This milestone comes as the company prepares for its annual Consumer Electronics Show (CES) keynote address in Las Vegas.
Wall Street Analysts Anticipate Key Announcements from Nvidia
As Wall Street analysts converge on Sin City to meet with top tech companies' management teams, all eyes are on Nvidia, the AI chipmaker. The company typically makes significant product announcements at CES, such as last year's debut of new desktop graphics chips for gaming and AI. CEO Jensen Huang's keynote address is highly anticipated, providing investors with a glimpse into what lies ahead for the artificial intelligence giant and the burgeoning AI market.
Huang's Keynote Address: A Preview of Nvidia's Future
Huang's CES keynote is scheduled to take place at 6:20 p.m. PST on Monday and will be livestreamed on various platforms. His address comes as investors eagerly await the rollout of Nvidia's latest Blackwell AI chips, which analysts have predicted will drive a massive new cycle of demand for the company's products despite concerns about a slowdown in AI spending.
Blackwell AI Chips: A $100 Billion Market Opportunity
Stifel analyst Ruben Roy has suggested that the Blackwell AI chips represent a staggering $100 billion market opportunity for Nvidia. The jump in Nvidia stock on Monday extends its gains from last week, when the chipmaker led a rebound in the "Magnificent Seven" tech stocks after a disappointing end to 2024.
Potential Announcements at CES
In another potential tailwind for Nvidia shares, Truist Securities analyst William Stein said in a note Monday that he believes Nvidia will announce a standalone CPU, or central processing unit, distinct from its Hopper and Blackwell GPUs. Such an announcement could open up another $35 billion market opportunity for the company.
Bank of America's Vivek Arya: CES to be a "Positive Catalyst"
Bank of America's Vivek Arya said in a note Monday that while NVDA stock has essentially stalled over the past six months, he expects CES to be a positive catalyst, reasserting Nvidia's platform dominance. Arya believes that Nvidia will provide reassuring updates on its Blackwell shipments and announcements about its robotics strategy and potentially an AI PC partnership.
Nvidia's Leadership Under the Spotlight
As investors await Nvidia's key announcements at CES, they are also keeping a close eye on the company's leadership under CEO Jensen Huang. With his keynote address set to kick off the conference, investors will be looking for any hints about Nvidia's future plans and strategies in the AI market.
Investors Expecting Reassuring Updates from Nvidia
Nvidia's stock has been relatively stagnant over the past six months, but analysts expect CES to provide a much-needed boost. Investors are hoping for reassuring updates on Blackwell shipments, as well as announcements about Nvidia's robotics strategy and potentially an AI PC partnership.
CES: A Platform for Nvidia to Showcase its Innovations
CES serves as a crucial platform for top tech companies to showcase their innovations and announcements. With Nvidia's history of making significant product announcements at the conference, investors are eagerly anticipating what lies ahead for the company.
Nvidia's Blackwell Chips: Addressing Concerns about Overheating
In recent months, rumors have circulated about overheating problems in servers using Nvidia's Blackwell chips. However, in a November earnings call, Nvidia confirmed that Blackwell production is ramping up in the current quarter, with the chips shipping to customers ahead of expectations.
Conclusion
As Nvidia prepares for its CES keynote address, investors are holding their breaths, anticipating significant announcements about the company's future plans and strategies in the AI market. With a record-high stock price and a history of making major product announcements at CES, Nvidia is undoubtedly one of the most closely watched companies in the tech industry. As investors await the rollout of Nvidia's latest Blackwell AI chips, they are also keeping a close eye on the company's leadership under CEO Jensen Huang, who will be delivering his keynote address at 6:20 p.m. PST on Monday.