Stocks in Focus: Nvidia Corp (NASDAQ:NVDA) Maintains Upward Trajectory
In a power-packed start to the week, Nvidia Corp (NASDAQ:NVDA) continues its upward stock trajectory as it makes headlines with its impressive lineup of AI chips and innovations showcased at the Consumer Electronics Show (CES). The company’s CEO, Jensen Huang, took center stage during his CES 2025 keynote, unveiling a range of groundbreaking products that are set to revolutionize various industries.
Project DIGITS: A Desktop-Sized Personal AI Supercomputer
At the forefront of Nvidia’s announcements is Project DIGITS, a $3,000 desktop-sized personal AI supercomputer powered by the GB10 Grace Blackwell super chip. This cutting-edge device is designed to bring high-performance computing capabilities to researchers, developers, and enthusiasts alike.
RTX 5000 GPU Series and Laptops Featuring RTX 50-Series
Huang also introduced the new RTX 5000 GPU series, which boasts enhanced performance and efficiency. Additionally, Nvidia showcased laptops featuring the RTX 50-series, promising a seamless gaming experience with AI-powered graphics capabilities.
Grace Blackwell NVLink 72 System: High-Speed Data Transfer
Nvidia’s Grace Blackwell NVLink 72 system enables high-speed data transfer between devices, further expanding the possibilities for AI applications and edge computing.
AI-Powered Gaming: PUBG and Beyond
The new RTX 5090 chips are capable of running complex AI models and computer graphics, including helping game developers integrate generative AI into their characters in popular games like PUBG: Battlegrounds. Nvidia told CNBC that the high-end chips will be able to run AI models from companies such as Meta, Mistral, and Stability AI.
Toyota Partners with Nvidia for Enhanced Automated Driving Capabilities
In a significant partnership, Toyota Motor Corp (NYSE:TM) will utilize Nvidia’s Drive AGX Orin to enhance its automated driving capabilities. The deal includes the provision of driver-assistance chips and software for Toyota vehicles. Nvidia expects its automotive vertical business to grow to approximately $5 billion in fiscal 2026 from around $4 billion in fiscal 2025.
Nvidia’s Automotive Clients: A Growing Ecosystem
Some of Nvidia’s Drive AGX clients include:
- BYD Co (OTC:BYDDF) (OTC:BYDDY)
- Li Auto Inc (NASDAQ:LI)
- Lucid Group Inc (NASDAQ:LCID)
- Rivian Automotive, Inc (NASDAQ:RIVN)
- Xiaomi Corp (OTC:XIACF) (OTC:XIACY)
- ZEEKR Intelligent Technology Holding (NYSE:ZK)
Open-Source Llama Models and the Future of Robotics
At CES, Nvidia also highlighted its alliance with Meta Platforms Inc (NASDAQ:META) on innovating open-source Llama models. Daniel Newman of The Futurum Group expects these models to outperform OpenAI potentially.
Physical AI Tools for Robots: A Step Towards Higher Automation
Huang showcased physical AI tools designed to train robots in simulated environments that closely mimic the real world. These innovations are set to boost automation in warehouses and factories, with Nvidia estimating a potential market worth $38 billion in decades.
The ChatGPT Moment for General Robotics: Just Around the Corner
According to Jensen Huang, the ChatGPT moment for general robotics is just around the corner. This breakthrough has the potential to revolutionize industries across the board.
Cosmos Foundation Models: Affordable Photorealistic Video Generation
Nvidia’s Cosmos foundation models 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.
Investor Reaction: Upside Potential from Robotics and Autonomous Cars
Bank of America’s Vivek Arya told Reuters that he will await possible upside from Nvidia’s robotics by drawing parallels with the metaverse and autonomous cars.
Price Action: NVDA Stock Up 2.20% Pre-Market
As of the last check Tuesday, NVDA stock is up 2.20% at $152.87 premarket.
Conclusion
Nvidia’s showcase at CES has left a lasting impression on investors and industry experts alike. With its innovative AI chips and applications, the company is poised to revolutionize various sectors. As Nvidia continues to push the boundaries of what is possible with AI, one thing is certain – the future looks bright for this tech giant.
References:
- NVIDIA (NVDA): Free Stock Analysis Report
- Benzinga.com
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