Dow Jones Rises; Nvidia Hits Buy Point Ahead Of CEO Jensen Huang Speech

The Dow Jones Industrial Average (DJX) and Nvidia (NVDA) stock have both experienced significant gains in recent months, with NVDA surging about 170% in 2024. This performance has boosted investor sentiment, as seen in the rally of the S&P 500 and the tech-heavy Nasdaq composite. Key factors driving this trend include strong demand for AI chips, particularly Nvidia's Blackwell GPUs, and robust spending by Big Tech companies on AI infrastructure. Additionally, Nvidia's CEO Jensen Huang's keynote address at CES 2025 is expected to provide further insights into the company's growth prospects, potentially serving as a catalyst for the stock.

Nvidia's CEO Jensen Huang is expected to discuss the demand and supply constraints of the company's Blackwell GPUs in his upcoming speech at CES 2025. Analysts at Citi expect Huang to raise sales expectations for Blackwell, given the "insane" demand for AI chips. Huang previously mentioned that Nvidia expects to deliver more Blackwell platforms in the current quarter than initially estimated. Additionally, Huang may discuss a demand inflection in AI robotics and the upcoming Rubin chips, which could further boost market sentiment. Investors will be looking for any positive commentary on Blackwell's supply constraints, as this could drive the stock price and overall market sentiment.

Analysts expect Nvidia to raise sales expectations for its Blackwell GPUs amid huge demand for AI chips, with Citi analysts pointing to "insane" demand and a demand inflection in AI robotics. Despite supply constraints, Blackwell is seen as Nvidia's next major growth driver. However, Nvidia's Nov. 20 earnings report disappointed Wall Street, with the company's revenue forecast failing to impress. The stock slumped after the report, but still gained 171% in 2024. Morgan Stanley analysts argue that Nvidia will take market share this year, with the keynote expected to be a "positive event." Investors should watch for any commentary on Blackwell and the broader AI market, as well as any updates on Nvidia's guidance.