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NVIDIA (NVDA) CES-induced sale attack plan.
At a glitzy technology gathering this Monday, NVIDIA CEO Jensen Huang said the company has begun full-scale production of its long-awaited Blackwell chips. “We’re racing to deploy Blackwells in every data center in the world,” he told the packed room, wearing a black shiny alligator leather jacket.
The company also announced a number of new technologies to support its expanding ambitions in robotics and driverless cars, as reported by Yahoo Finance technology editor Daniel Howley.
But the Street wanted more from its stock darlings.
Read more: Why AMD seems undervalued
Ends: January 10th 4:00:01pm (EST)
Nvidia has fallen into a slump due to a combination of Mr. Hwang’s modest statements compared to rising expectations and general investors’ reluctance. The bearish stock fell 6% on Tuesday, despite hitting a record high the previous day.
The stock is currently down 8% from its aforementioned high.
Dan Ives, a technology analyst at Wedbush, was present when Huang spoke at CES and thinks the stock price drop has gone too far.
“I think Mr. Jensen’s point is that this is in the early stages[of AI],” Ives told Yahoo Finance executive editor Brian Sozzi on the Opening Bid podcast (above). (See video, listen below). “It’s just the beginning of a revolution, but (the fear of a sell-off) has made investors nervous.”
“We could see stocks fall, the bears come out of hibernation mode, and we could go back to the quarter where stocks were at $100, and then all of a sudden two months later we could be back to all-time highs,” Ives said. continued. “These expedient responses say nothing about short-term demand and are easily frightened.”
“The reality is that we’re more bullish, not less bullish, because of robotics, autonomous driving, and what the market opportunity means from a future perspective.” spoke.
From Ives’ perspective, the future looks bright for Nvidia and AI. In one analogy, he put traditional investments like health care and finance into a bucket that resembles a “minivan going 40 miles per hour,” and compared tech stocks like Nvidia to a “Ferrari in the left lane.”
He added, comparing the excitement surrounding Nvidia to the buzz seen at CES when former Apple (AAPL) co-founder Steve Jobs introduced the iPhone in 2007. There’s something new. Ives said NVIDIA’s current position as a chip provider for future high-demand products also puts it ahead of its competitors.
“Broadly speaking, we’re going to see some white joints within the next six months,” Ives said. “The way I see it, tech stocks are up 25% this year. I think Nvidia, along with Apple, is worth well over $4 trillion.”
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