On Monday, Nvidia’s (NVDA) stock closed at a record high ahead of CEO Jensen Huang’s keynote address at the annual Consumer Electronics Show (CES) in Las Vegas. The company’s shares rose more than 3% to $149.43, surpassing its previous record closing price of $148.88 per share on November 7, 2024.
A Look at Nvidia’s Recent Performance
Nvidia typically makes significant product announcements at the CES trade show, and Huang’s commentary is expected to provide investors with a preview of what’s ahead for the artificial intelligence giant and the burgeoning AI market. The company’s management team has been busy meeting with Wall Street analysts in Sin City, fueling expectations for exciting developments.
CES 2025: A Platform for Nvidia’s Latest Innovations
Huang is scheduled to deliver his keynote address at 6:20 p.m. PST on Monday, which will be livestreamed on Facebook, YouTube, LinkedIn, and other platforms. His speech comes as investors eagerly await the rollout of Nvidia’s latest Blackwell AI chips, which analysts believe will drive a massive new cycle of demand for the company’s products despite concerns about a slowdown in AI spending.
Nvidia’s Blackwell AI Chips: A $100 Billion Market Opportunity
The delay in the rollout of its Blackwell lineup and rumors of overheating problems in servers using those chips had raised concerns among investors. However, Nvidia confirmed during its November earnings call that Blackwell production is ramping up in the current quarter, with the chips shipping to customers ahead of expectations. According to Stifel analyst Ruben Roy, the Blackwell AI chips represent a $100 billion market opportunity for Nvidia.
A Rebound in Tech Stocks
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. This rally has been driven by a combination of factors, including the company’s strong product pipeline and improving investor sentiment.
Potential Tailwinds for Nvidia Shares
In addition to the excitement around its Blackwell AI chips, another potential tailwind for Nvidia shares is the possibility of an announcement regarding a standalone CPU. Truist Securities analyst William Stein said in a note Monday that he believes Nvidia will announce a standalone CPU at CES, which could open up another $35 billion market opportunity for the company.
Bank of America’s Vivek Arya also weighed in on the potential announcements from Nvidia. In a note Monday, Arya said while ‘NVDA stock has essentially stalled over the past 6 months,’ he expects CES to be a ‘positive catalyst, re-asserting NVDA’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.
A Positive Catalyst for Investors
As investors eagerly await the rollout of Nvidia’s latest innovations, the company’s strong product pipeline and improving investor sentiment are expected to drive further growth. With a track record of delivering significant product announcements at CES, Nvidia is poised to continue its leadership in the artificial intelligence market.
Stock Story’s Key Takeaways
- Nvidia’s stock hit a record high on Monday ahead of CEO Jensen Huang’s keynote address at CES.
- The company’s shares rose more than 3% to $149.43, surpassing its previous record closing price.
- Nvidia typically makes significant product announcements at CES, and Huang’s commentary is expected to provide investors with a preview of what’s ahead for the artificial intelligence giant and the burgeoning AI market.
- Analysts believe that the Blackwell AI chips represent a $100 billion market opportunity for Nvidia.
- A potential announcement regarding a standalone CPU could open up another $35 billion market opportunity for the company.
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