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The Nvidia (NVDA) CES-induced sell-off attack plan.
At the glitzy tech gathering this Monday, Nvidia CEO Jensen Huang shared that the company has kicked production of its much-anticipated Blackwell chip into high gear. “We’re racing to get Blackwells into every data center in the world,” he told a packed house while sporting a black shiny alligator leather jacket.
The company also unveiled a host of new technology to support its growing ambitions in robotics and driverless cars, Yahoo Finance tech editor Daniel Howley reported.
But the Street wanted more from its stock darling.
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As of 2:18:18 PM EST. Market Open.
Huang’s more subdued words relative to elevated expectations combined with general investor skittishness sent Nvidia into a tailspin — with bears sending the stock down 6% on Tuesday despite hitting a record high a day prior.
The stock is now off by 8% from those aforementioned highs.
Wedbush tech analyst Dan Ives was in the room when Huang spoke at CES and thinks the sell-off is way overdone.
“I think what Jensen’s laying out is this is early days [in AI],” Ives told Yahoo Finance Executive Editor Brian Sozzi on the Opening Bid podcast (see video above; listen below). “It is just the beginning of the revolution but [the sell-off fear] was investors [getting] worried.”
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“We could go back to quarters where the stock sells off, bears come out of hibernation mode, stock goes to $100, then all of a sudden, two months later, back up to all-time highs,” Ives continued. “These knee-jerk reactions, it’s easy to get scared by them because they don’t say anything about near-term demand.”
“The reality is you come out of that more bullish rather than less bullish because of what the market opportunity means in terms of robotics, autonomous, and the future,” he said.
From Ives’s perspective, the future for Nvidia and AI looks bright. In one analogy, he placed more traditional investments such as healthcare or finance in the bucket akin to a “minivan going 40 miles per hour” while tech stocks such as Nvidia were a “Ferrari in the left lane.”
Comparing excitement around Nvidia to the buzz CES once saw when Apple (AAPL) co-founder Steve Jobs unveiled the iPhone in 2007, he added, “There’s something different. There’s something new.” Nvidia’s current position as a chip provider for future in-demand products also puts it ahead of competitors, said Ives.
“Broadly, we’re going to see some white knuckles in the next six months,” Ives said. “My view is tech stocks are up 25% this year. I think Nvidia is well over $4 trillion along with Apple.”
