Nvidia's CES Setback Mirrors 2007 iPhone Launch, Says Dan Ives: 'Jensen Plays Chess While Others Are Playing Checkers'

Nvidia's stock fell 6.2% on Tuesday after CEO Jensen Huang's CES presentation highlighted long-term AI advancements but lacked immediate market drivers. Unveiling cutting-edge products like Blackwell-based GeForce GPUs and the RTX 5090, Huang also emphasized AI's transformative potential across industries, including autonomous vehicles with Toyota and self-driving technology with Uber. Nvidia's Project Digits, targeting AI developers, signals deeper ambitions in computing. Despite recent stock declines, the company eyes sustained AI-driven growth.



Dan Ives, a prominent Wall Street analyst, suggests that investors can capitalize on Nvidia's current setback by adopting a long-term perspective. Here's how investors can approach this opportunity:

1. Understand the long-term potential of AI and Nvidia's role: Nvidia's CEO, Jensen Huang, has highlighted the company's long-term vision for AI, including its potential to transform industries worth $50 trillion. Nvidia's products, such as the Blackwell-based GeForce GPUs and the RTX 5090, are at the forefront of this revolution. By investing in Nvidia, investors can tap into this long-term growth potential.
2. Focus on Nvidia's strategic partnerships and collaborations: Nvidia has formed strategic partnerships with major companies like Toyota, MediaTek, and Uber. These collaborations demonstrate Nvidia's ability to drive innovation and growth in various industries. Investors can benefit from these partnerships as they contribute to Nvidia's revenue and market share.
3. Consider Nvidia's strong financial performance and growth prospects: Nvidia's CFO, Colette Kress, has stated that the AI transition will continue to drive growth for the next 10 years. The company's data center operation, which contributes more than $100 billion annually, is on track to grow further as Nvidia rolls out hardware and software to a larger swath of business and government agencies.
4. Monitor key price levels and trading volumes: While Nvidia's stock has experienced a recent setback, investors can capitalize on this opportunity by watching for key price levels and trading volumes. If the stock retraces to support levels around $140 or $130, investors can consider entering long positions. Additionally, increased trading volumes would signal conviction behind recent buying, indicating a potential trend reversal.
5. Stay informed about Nvidia's product roadmap and innovations: Nvidia consistently introduces new products and technologies, such as the Cosmos platform for physical AI and the Llama Nemotron Language Foundation Models. By staying informed about Nvidia's product roadmap and innovations, investors can make more informed decisions about the company's long-term prospects.

By adopting a long-term perspective and focusing on these key aspects, investors can capitalize on Nvidia's current setback and position themselves for potential gains as the company continues to drive AI innovation and growth.