Nvidia stock experienced a significant 5% surge on Monday, reaching an intra-day high of $152.16 as investors eagerly anticipated CEO Jensen Huang’s keynote address at the Consumer Electronics Show (CES) in Las Vegas. The stock climbed within striking distance of its all-time record high of $152.89, demonstrating strong market confidence ahead of the highly anticipated speech scheduled for 6:30 p.m. PST.
Historical patterns suggest Huang’s CES appearances serve as powerful catalysts for Nvidia’s stock performance. Bank of America analysts noted that during the 2024 CES event, Nvidia shares jumped 6.4% on the day of Huang’s speech, followed by continued momentum in the subsequent two days. The bank characterized it as “a monstrous Monday,” particularly significant given that Nvidia had been range-bound for 4-5 months leading up to the event, with investors concerned about a potential “cloud capex cliff.”
The current market setup mirrors last year’s conditions, with Nvidia stock trading sideways for approximately six months as investors grapple with concerns about the sustainability of the AI capital expenditure boom. Despite these worries, analysts remain bullish on the company’s prospects and the potential announcements from Huang’s keynote.
Bank of America analyst Vivek Arya outlined several key areas to watch during the presentation. The integration of AI into robotics is expected to be a major theme, with Arya anticipating updates on Nvidia’s robotics strategy spanning from silicon to software, including the emergence of “physical AI.” He expects Nvidia to make “a strong push” into the robotics sector, potentially opening new revenue streams for the company.
Additional anticipated announcements include new PC gaming cards based on Nvidia’s next-generation Blackwell AI chip architecture, and the possibility of Nvidia entering the AI PC market either through partnerships or as a standalone product. Arya is also looking for updates on the data center business, particularly the ongoing ramp of Blackwell chips and upgraded variants like the GB300 and B300 expected in the second half of 2025.
A teaser for Nvidia’s Rubin AI GPU, scheduled to succeed Blackwell in 2026, is also expected. Arya maintains a “Buy” rating on Nvidia with a $190 price target, representing 26% upside potential, and calls it a “top pick.” Both Bank of America and Citi have placed Nvidia on “positive catalyst watch” for the CES event, with analysts believing the keynote will “re-assert NVDA’s platform dominance/opportunity in high-growth markets.”
Key Quotes
It was a monstrous Monday, with NVDA being the most notable move. NVDA had been extremely range bound for the 4-5 months heading into it, and the buyside was obsessed with the inevitable cloud capex cliff.
Bank of America analysts described Nvidia’s 2024 CES performance, highlighting how the stock broke out of a prolonged trading range despite investor concerns about declining cloud infrastructure spending. This quote underscores the catalytic power of Huang’s presentations.
We look for updates on Robotics strategy from silicon to software and emergence of ‘physical AI’ theme.
Bank of America analyst Vivek Arya outlined his expectations for the keynote, emphasizing the anticipated expansion into robotics. This signals Nvidia’s strategic pivot toward integrating AI into physical systems, representing a major new growth opportunity.
While the big themes have already been mentioned in the media ahead of the event, we still see CES as a positive catalyst, re-asserting NVDA’s platform dominance/opportunity in high-growth markets.
Vivek Arya explained why the CES keynote remains important despite pre-event media coverage. This quote reflects analyst confidence that Nvidia will demonstrate its continued leadership position across multiple AI-driven markets, justifying the stock’s premium valuation.
Our Take
Nvidia’s pre-CES stock surge reveals the market’s continued faith in the company’s AI leadership despite mounting concerns about spending sustainability. The 5% jump on anticipation alone demonstrates how central Nvidia has become to the AI investment narrative. What’s particularly noteworthy is the shift toward “physical AI” and robotics—this represents Nvidia’s strategic evolution from being purely a chip supplier to becoming a comprehensive AI platform provider. The Blackwell-to-Rubin roadmap shows aggressive innovation cycles that competitors struggle to match. However, the six-month sideways trading pattern suggests investors are becoming more discerning, requiring concrete evidence of sustained demand rather than accepting the AI growth story on faith alone. Huang’s keynote will need to address capex concerns while demonstrating new revenue streams, particularly in robotics and AI PCs, to justify the bullish $190 price targets. The real test will be whether Nvidia can maintain its 80%+ market share in AI accelerators as competition intensifies from AMD, Intel, and custom chips from hyperscalers.
Why This Matters
This development is significant for the AI industry as Nvidia remains the dominant force in AI chip manufacturing, controlling the infrastructure that powers the current AI revolution. Jensen Huang’s CES keynotes have historically served as bellwethers for the broader AI sector, often revealing strategic directions that influence competitors and partners alike.
The anticipated focus on robotics and “physical AI” signals a crucial evolution in AI applications, moving beyond software and cloud-based systems into tangible, real-world implementations. This expansion could unlock massive new markets and accelerate AI adoption across manufacturing, logistics, healthcare, and consumer sectors.
The market’s reaction also reflects broader investor sentiment about AI’s sustainability as an investment theme. With concerns about a potential slowdown in AI capital expenditure, Huang’s keynote could either validate continued massive investments or signal a more measured approach. The introduction of next-generation chips like Blackwell variants and the Rubin GPU teaser demonstrates Nvidia’s commitment to maintaining its technological lead, which is critical for the entire AI ecosystem’s advancement. For businesses and developers building AI applications, Nvidia’s roadmap directly impacts their capabilities and competitive positioning.
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