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The Nvidia (NVDA) CES– induced selling attack plan.
At Monday’s glittering tech meeting, Nvidia CEO Jensen Huang shared that the company has launched the production of its long-awaited Blackwell chip in high gear “We’re fighting to bring Blackwells to every data center in the world,” he told a packed house while sporting a black shiny alligator leather jacket.
The company also unveiled a number of new technologies to support its growing ambitions in robotics and driverless cars, according to Yahoo Finance’s technology editor. Daniel Hawley informed.
But the street wanted more from his beloved.
Read more: Why AMD seems undervalued
As of 2:34:12 PM EST. Open Market
Huang’s more muted words in relation to high expectations combined with general investor unease brought Nvidia down — with bears sending shares down 6% on Tuesday despite hitting a record high a day earlier.
Shares are down 8% from the highs mentioned above.
Technology Analyst at Wedbush Dan Ives was in the room when Huang spoke at CES and thinks the sale is greatly exaggerated.
“I think what Jensen is presenting is that it’s early days (in AI),” Ives told the executive editor of Yahoo Finance Brian Sozzi to the Opening offer podcast (see video above; listen below). “It’s just the beginning of the revolution, but (the fear of sales) was worrying for investors.”
“We could go back to quarters where the stock sells off, the bones come out of hibernation, the stock hits $100, and then suddenly, two months later, it’s back to all-time highs,” Ives continued. “These knee-jerk reactions, it’s easy to get scared because they don’t say anything about short-term demand.”
“The reality is that you come out of this more bullish than less bullish on what the market opportunity means in terms of robotics, autonomous and the future,” he said.
From Ives’ perspective, the future for Nvidia and AI looks bright. In one analogy, he placed more traditional investments such as health care or financials as a “minivan going 40 miles per hour,” while tech stocks like Nvidia were a “Ferrari in the left lane.” .
Comparing the excitement around Nvidia to the buzz that CES once saw when Apple (AAPL) co-founder Steve Jobs introduced the iPhone in 2007, he added: “There’s something different. There’s something new.” Nvidia’s current position as a supplier of chips for future on-demand products also puts it ahead of competitors, Ives said.
“Overall, we’re going to see some white knuckles in the next six months,” Ives said. “My view is that tech stocks are up 25% this year. I think Nvidia is over $4 trillion along with Apple.”
