Nvidia Investors Look to Huang CES Speech to Spark Next Breakout
(Bloomberg) — Investors in Nvidia Corp. have high hopes that Monday’s speech from CEO Jensen Huang will lead to a fresh breakout in the chipmaker’s shares, which just ended at the first record close since November.
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Huang is set to take the stage at the closely watched CES trade show in Las Vegas on Monday night.Nvidia usually uses the event to show off consumer devices powered by its chips.However, investors will be focusing on any comments from the Blackwell chip, which is seen as a boost for Nvidia the next major driver Despite strong demand, Blackwell has faced supply constraints in part due to production challenges that have slowed its rollout.
“Demand for Blackwell is expected to remain very strong,” said Matt Cioppa, portfolio manager at Franklin Templeton Equity Group.
Investors have reasons to be optimistic. Huang’s comments about chip demand have boosted the stock over the past six months.In October, he called Blackwell’s demand “crazy,” and in November he said chips were being shipped amid “very strong” demand.
Shares posted a monthly loss in December, but are still up 171% in 2024, making them the biggest single driver of overall gains in the S&P 500. The stock is already up 11% this year, including a 3.4% gain on Monday. Who: With a market capitalization of $3.66 trillion, it is close to surpassing Apple Inc. as the largest company. The iPhone maker’s market capitalization is $3.7 trillion.
Disappointment in earnings
However, the stock briefly fell after Nvidia’s earnings report on Nov. 20. The company’s earnings forecast failed to impress Wall Street, which is accustomed to forecasts beating average estimates by wider margins.
The lull in stocks came as excitement over AI spending spread to other areas of the semiconductor industry.
Shares of Broadcom Inc. surged more than 30% in the past few weeks after the chipmaker predicted a boom in the market for AI components it designs for data center operators.Shares of Marvell Technology Inc. rose are up more than 20% after it reported better-than-forecast earnings on demand for its specialty AI chips.
Analysts at Morgan Stanley, led by Joseph Moore, compared the stock’s rise to a transfer of wealth from Nvidia, whose shares sank for four straight days after the Broadcom report, shedding more than $200 billion in market value.
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