Nvidia's AI Push at CES 2025: A Rocky Market Reception
Nvidia CEO Jensen Huang's keynote address at CES 2025 showcased a significant push into artificial intelligence, unveiling new chips, models, and platforms. Despite positive analyst sentiment, the company's stock experienced a downturn amidst a broader market decline.
New AI Hardware and Software Unveiled:
Huang's presentation highlighted Nvidia's advancements in AI across various sectors. Key announcements included the GeForce RTX 50 series of GPUs, powered by the Blackwell architecture, designed for AI PCs. This lineup, ranging in price from approximately $550 to $2,000, targets both desktop and laptop markets, with releases planned for later this month and March, respectively. Nvidia also introduced new AI foundational models for these PCs and unveiled Cosmos, a platform designed to support processing pipelines for robotics, autonomous vehicles, and vision AI. Huang positioned Cosmos as a "game-changer" and predicted a "ChatGPT moment for general robotics," citing partnerships with Uber and XPeng as early adopters. He further emphasized Nvidia's commitment to autonomous driving, highlighting collaborations with Toyota and Aurora Innovation.
Analyst Optimism Contrasts with Market Reaction:
Despite the positive announcements, Nvidia's stock, which initially surged to an all-time high of $153.13 after the keynote, reversed course, ultimately dropping 5.3% to $141.50. This decline occurred amidst a wider market downturn. Bernstein analyst Stacy Rasgon attributed the stock's performance to broader market factors and potential profit-taking after the stock's recent record high close. However, analysts remain largely bullish on Nvidia's future. Bank of America reiterated its "buy" rating and a $190 price target, representing a substantial premium over the current price. This confidence stems from Nvidia's perceived "continued AI dominance" and expanding reach across enterprise and consumer markets. The consensus among analysts tracked by Visible Alpha also remains positive, with nearly all maintaining a "buy" rating and a consensus price target suggesting a 25% upside. Wedbush analysts even suggested that the robotics and autonomous tech market could represent a further $1 trillion opportunity for Nvidia in the coming years.
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