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Nvidia investors look to Huang CES speech to spark next breakout

Jan 06, 2025 - financialpost.com
Nvidia investors are eagerly anticipating CEO Jensen Huang's speech at the Consumer Electronics Show (CES) in Las Vegas, hoping it will trigger a new surge in the company's stock, which has plateaued since November 2024. The focus is on Nvidia's Blackwell chip, seen as a major growth driver despite facing supply constraints due to manufacturing challenges. Analysts remain optimistic about Nvidia's market share growth, with the stock already up 11% in 2025, following a 171% gain in 2024. However, concerns about valuation persist, as Nvidia trades at high multiples compared to industry indices.

The stakes are high for Nvidia, as its recent earnings report failed to meet Wall Street's expectations, leading to a temporary slump in its stock. The CES event is viewed as a test of investor sentiment and risk appetite towards tech stocks. While Nvidia remains a top pick for analysts, the company's valuation and the broader AI spending excitement in the semiconductor industry are factors to watch. Investors are looking for Huang's keynote to reaffirm Nvidia's growth story, with the Blackwell chip expected to drive revenue in the latter half of the year.

Key takeaways:

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  • Nvidia investors are optimistic about CEO Jensen Huang's upcoming CES speech, hoping it will boost the company's stock, which has plateaued since November 2024.
  • The Blackwell chip is seen as Nvidia's next major growth driver, but supply constraints have slowed its rollout despite strong demand.
  • Nvidia's stock slumped after a disappointing revenue forecast in November, but it remains a top pick for analysts who expect it to gain market share this year.
  • The CES event and Huang's keynote are seen as tests of investor sentiment and risk appetite toward tech, with Nvidia's high valuation being a concern.
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