Nvidia stock surged 5% on Monday as investors eagerly awaited CEO Jensen Huang's keynote speech at the Consumer Electronics Show (CES) held in Las Vegas. Shares of Nvidia approached record highs, registering at $152.16 during intraday trading, just shy of its all-time peak of $152.89.
Recent trends indicate Nvidia stock typically rises leading up to Huang’s CES addresses, with analysts from Bank of America underscoring the correlation. They noted how Nvidia shares jumped 6.4% on the day of Huang's speech last year, followed by continued growth over the subsequent days. That historical momentum set the stage for this week’s anticipated rally.
“It was a monstrous Monday, with NVDA being the most notable move,” Bank of America remarked, noting the shares had been trading within narrow confines for several months. Analysts have also pointed to concerns about the potential slowdown of the AI investment boom, creating cautious optimism as Huang prepared to take the stage.
Bank of America's analyst Vivek Arya was particularly focused on the integration of AI within robotics as likely highlights of Huang’s presentation. “We look for updates on Robotics strategy from silicon to software and emergence of 'physical AI' theme,” Arya stated. Such developments could position Nvidia as more than just a major player but potentially at the forefront of technological transformation.
The expected news is set amid Nvidia's recent launches and innovations, including the introduction of new gaming cards and enhancements to its data center operations powered by the upcoming Blackwell chip architecture. Analysts are excited about new variants of these chips, possibly launching later this year.
Notably, Huang may also provide information on Nvidia's foray or potential entry strategies in the AI PC market, signalling broader ambitions beyond its traditional gaming and data-centric businesses.
According to Arya’s notes, Huang might drop intriguing hints on its next-generation Rubin chip, set to succeed the Blackwell architecture. “While the big themes have already been mentioned... we still see CES as a positive catalyst, re-asserting NVDA’s platform dominance/opportunity in high-growth markets,” Arya expressed, portraying the event as pivotal for Nvidia’s future endeavors.
Citi analysts also placed Nvidia's stock under “positive catalyst watch” during this week’s CES festivities, building on the excitement surrounding Huang’s intentions to provide strong updates and address market concerns.
This fervor around Nvidia correlates with broader movements within the technology sphere. The Nasdaq was buoyed by similar rallies, increasing by more than 1% to reach new heights. This was propelled by notable performances from other semiconductor firms, benefiting from resurging demand driven particularly by the AI sector.
Highlighting the optimism surrounding Huang's appearance, it’s reported Nvidia's market capitalization soared, climbing to $3.73 trillion at one point, briefly reclaiming its title as the world’s most valuable company before Apple edged back to the forefront.
Coinciding with Nvidia’s rise was Foxconn’s announcement of record fourth-quarter results, attributing this success to soaring demand for AI-centric servers—Illustrative of the interconnectedness of industry players where Nvidia’s GPUs play significant roles.
Looking forward, the AI market is projected to reach 15.7 trillion dollars by 2030. Nvidia is seen as pivotal within this growth curve, symbolizing not just hardware provision but also broader societal changes through its technology.
Huang’s net worth has reportedly swelled significantly, marking the interesting narrative of wealth tied to corporate success; his fortune saw about $5 billion added thanks to the stock movements leading up to this CES event. This brings Huang’s total wealth close to $131 billion, making him the ninth-richest person globally.
With various analyst projections estimating Nvidia’s stock could reach about $190—a 26% upside from its current levels—the anticipation surrounding Huang’s keynote this evening has investors eager for insights and validations of their speculative investments.
Huang is expected to deliver his keynote beginning at approximately 6:30 p.m. PST, just as the CES lights up the tech world with innovation and excitement. This keynote could not only shape Nvidia’s immediate future but also solidify Huang’s standing as one of the industry’s leaders within the booming AI sector.