Nvidia Stock Surges Ahead of CEO Jensen Huang's CES Keynote

Nvidia (NVDA) stock closed at a record high on Monday, January 6, 2025, ahead of CEO Jensen Huang's keynote address at the annual Consumer Electronics Show (CES) in Las Vegas. Shares rose more than 3% to $149.43, surpassing the company's previous record closing price of $148.88 per share on November 7, 2024.

As Wall Street analysts gather in Sin City to meet with management from top tech companies, all eyes are on the AI chipmaker. Nvidia typically makes important product announcements at CES, such as last year's debut of new desktop graphics chips for gaming and AI. Huang's commentary is expected to give investors a preview of what's ahead for the artificial intelligence giant and the burgeoning AI market.

Huang is scheduled to deliver his keynote at 6:20 p.m. PST on Monday, January 6. It will be livestreamed on Facebook, YouTube, LinkedIn, and other sites. His address comes as investors eagerly await the rollout of Nvidia's latest Blackwell AI chips, which analysts have said will drive a massive new cycle of demand for the company's products despite fears of a slowdown in AI spending.

After a design flaw pushed back the rollout of its Blackwell lineup and rumors of overheating problems in servers using those chips circulated, Nvidia confirmed in a November earnings call that Blackwell production is ramping up in the current quarter, with the chips shipping to customers ahead of expectations. Stifel analyst Ruben Roy has suggested that the Blackwell AI chips represent a $100 billion market opportunity for Nvidia.

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 at CES. Stein has said in past notes that such an announcement could open up another $35 billion market opportunity for the company.

Bank of America's Vivek Arya said in a note Monday that 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 said he believes Nvidia will provide "reassuring updates" on its Blackwell shipments and announcements about its robotics strategy and, potentially, an AI PC partnership.



Nvidia's strong performance in the AI and gaming segments has contributed to its recent stock price surge. The company's Graphics segment, which includes GeForce GPUs for gaming and PCs, Quadro/NVIDIA RTX GPUs for enterprise workstation graphics, and virtual GPU (vGPU) software for cloud-based visual and virtual computing, has been a key driver of growth. Additionally, the Compute & Networking segment, which comprises Data Center computing platforms and end-to-end networking platforms, including Quantum for InfiniBand and Spectrum for Ethernet, has also played a crucial role in Nvidia's success.

The AI segment, in particular, has been a major growth driver for Nvidia. The company's AI platforms are used in various industries, such as healthcare, automotive, and entertainment, enabling advanced chatbots, robots, software-defined vehicles, and virtual worlds. Nvidia's AI tools are also foundational to the next generation of technological breakthroughs, such as self-driving cars and automated industrial processes.

Nvidia's strong performance in the AI and gaming segments is reflected in its stock price. As of January 7, 2025, Nvidia's stock price is $149.43, which is a significant increase from its 52-week low of $49.479 and a slight decrease from its 52-week high of $152.89. The company's market capitalization is $3.66 trillion, indicating the significant value that investors place on Nvidia's AI and gaming segments.

In conclusion, Nvidia's upcoming CES keynote by CEO Jensen Huang is expected to have a positive impact on investor sentiment and stock performance, given the company's strong market position, anticipated product announcements, and the bullish analyst recommendations. Nvidia's AI and gaming segments have significantly contributed to its recent stock price surge, and the company's commitment to sustainability and ethical AI practices is likely to further enhance investor confidence and stock performance.