CES Kick-Off Boosts Nvidia’s Stock
Nvidia Corp (NASDAQ:NVDA) has continued its upward trajectory this week, building on a strong start at the Consumer Electronics Show (CES). The company is making waves in the AI and gaming spaces, with several key announcements that have investors taking notice. The CES event was just one of several factors contributing to Nvidia’s success this week, including Microsoft Corp’s (NASDAQ:MSFT) potential $80 billion investment in developing AI data centers for 2025 and Foxconn’s robust quarterly results.
Project DIGITS: A Desktop-Sized Personal AI Supercomputer
During his CES keynote, Chief Jensen Huang unveiled Project DIGITS, a desktop-sized personal AI supercomputer powered by the GB10 Grace Blackwell super chip. This innovative device is designed to bring high-performance computing capabilities to a wider range of users, including researchers, developers, and enthusiasts.
New RTX 5000 GPU Series
Huang also introduced the new RTX 5000 GPU series, which promises to deliver improved performance and power efficiency for demanding applications such as gaming, AI, and content creation. The RTX 50-series GPUs will be integrated into laptops, providing users with a seamless and immersive experience.
Grace Blackwell NVLink 72 System
In addition to the new GPU series, Nvidia also showcased its Grace Blackwell NVLink 72 system, which enables high-speed data transfer between devices and accelerators. This technology is expected to play a key role in accelerating AI workloads and improving overall system performance.
AI-Powered Gaming with PUBG: Battlegrounds
Nvidia told CNBC that the high-end RTX 5090 chips will be capable of running complex AI models and computer graphics, including helping game developers integrate generative AI into their characters. This technology has the potential to revolutionize the gaming industry, enabling more realistic and immersive experiences.
Automotive Expansion with Toyota
Nvidia also announced a partnership with Toyota Motor Corp (NYSE:TM) to provide driver-assistance chips and software for its vehicles. This collaboration is expected to enhance Toyota’s automated driving capabilities and contribute to the growth of Nvidia’s automotive business.
Growing Automotive Vertical Business
Nvidia expects its automotive vertical business to reach $5 billion in fiscal 2026, up from $4 billion in fiscal 2025. The company has already secured deals with several major clients, including BYD Co (OTC:BYDDF), Li Auto Inc (NASDAQ:LI), Lucid Group Inc (NASDAQ:LCID), Rivian Automotive, Inc (NASDAQ:RIVN), Xiaomi Corp (OTC:XIACF), Zeekr Intelligent Technology Holding (NYSE:ZK).
AI Innovations with Meta Platforms Inc
At CES, Nvidia also highlighted its partnership with Meta Platforms Inc (NASDAQ:META) to innovate open-source Llama models. Daniel Newman of The Futurum Group believes that these models have the potential to outperform OpenAI.
Physical AI Tools for Robotics
Huang showcased physical AI tools designed to train robots in simulated environments that mimic real-world scenarios. These tools are expected to boost automation in warehouses and factories, contributing to a humanoid-robot market valued at $38 billion in decades.
The ‘ChatGPT Moment’ for General Robotics
Nvidia’s Chief Jensen Huang told the Wall Street Journal that the "ChatGPT moment" for general robotics is just around the corner. This suggests that Nvidia is positioning itself to capitalize on the growing demand for AI-powered robots and automation solutions.
Cosmos Foundation Models
The company also announced its Cosmos foundation models, which generate photorealistic video to train robots and self-driving cars at a more affordable cost. These models will be available on an open license, similar to Meta’s Llama 3 language models.
Growing Robotics Market with Nvidia
Vivek Arya of Bank of America believes that Nvidia’s robotics business has the potential for significant growth, drawing parallels with the metaverse and autonomous cars. This sentiment is reflected in the company’s stock performance, which is up 2.20% at $152.87 premarket.
Conclusion
Nvidia’s CES event was a major success, highlighting its commitment to innovation and leadership in the AI and gaming spaces. With several key announcements and partnerships, the company is well-positioned to capitalize on the growing demand for AI-powered solutions. As investors continue to take notice of Nvidia’s performance, it will be interesting to see how the company builds on this momentum in the coming months.
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