Shares of chipmaker Nvidia (NVDA) sank 5% at the time of writing after CEO Jensen Huang delivered a keynote speech at the Consumer Electronics Show (CES), which is one of the world’s largest tech events. While the presentation highlighted partnerships with Toyota (TM) and MediaTek, some investors felt that it lacked immediate catalysts.
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Indeed, Huang described Nvidia’s vision of powering a world filled with humanoid robots, autonomous factories, and self-driving vehicles, but analysts at Stifel called the announcements “significant but long-tailed.” This means that the financial returns from these innovations are likely to be realized over a longer period of time.
New Gaming and AI Products
Gaming was also in the spotlight as Nvidia introduced its GeForce 50 series GPUs, which uses the same Blackwell architecture as its AI chips. The RTX 5090 will launch at $1,999, with mid-range cards like the RTX 5070, priced at $549, arriving in February. Although gaming once led Nvidia’s revenue, its data center business, driven by AI demand, is expected to exceed $100 billion this year.
Huang also revealed Nvidia Cosmos, a system designed to make AI-powered robots and vehicles smarter through simulated training scenarios. Partnerships, such as one with Uber (UBER) to use its vast ride data for training autonomous models, aim to expand Nvidia’s reach. Additionally, Nvidia introduced “Project Digits,” a $3,000 desktop PC for AI developers that is powered by the Grace Blackwell Superchip and designed for running large AI models locally rather than relying solely on cloud computing.
Is NVDA a Good Stock to Buy?
Overall, analysts remain bullish on NVDA stock, with a Strong Buy consensus rating based on 37 Buys and three Holds assigned in the past three months. After a 171% rally in its share price over the past year, the average NVDA price target of $177.03 per share implies an upside potential of 24.9% from current levels.
