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The Nvidia (NVDA) CES sell-off attack plan.
At Monday’s glitzy tech meeting, Nvidia CEO Jensen Huang shared that the company has accelerated production of its long-awaited Blackwell chip. “We are racing to get Blackwells into every data center in the world,” he told a packed auditorium while sporting a shiny black crocodile skin jacket.
The company also unveiled a number of new technologies to support its growing ambitions in robotics and self-driving cars, Yahoo Finance technology editor Daniel Howley reported.
But Street wanted more of his beloved value.
Read more: Why AMD seems undervalued
Closing: January 10 at 4:00:01 pm EST
Huang’s more dovish words regarding elevated expectations combined with general investor nervousness sent Nvidia into a tailspin, with bears sending the stock down 6% on Tuesday despite hitting an all-time high the day before. .
The stock is now 8% below the aforementioned highs.
Wedbush technology analyst Dan Ives was in the room when Huang spoke at CES and believes the sell-off is too exaggerated.
“I think what Jensen is making is that we are in the early days [in AI]”Ives told Yahoo Finance executive editor Brian Sozzi on the Opening Bid podcast (watch video above; listen below). “It’s just the beginning of the revolution, but [the sell-off fear] They were investors [getting] concerned.”
“We could go back to quarters where stocks sell off, bears come out of hibernation mode, stocks rise to $100, and then suddenly two months later they’re back at all-time highs,” Ives continued. “It’s easy to get scared by these knee-jerk reactions because they don’t say anything about short-term demand.”
“The reality is that you come away more optimistic rather than less optimistic because of what the market opportunity means in terms of robotics, autonomy and the future,” he said.
From Ives’ perspective, the future for Nvidia and AI looks bright. In an analogy, he put more traditional investments, like healthcare or finance, in a bucket similar to a “minivan going 40 miles per hour,” while tech stocks like Nvidia were a “Ferrari in the left lane.”
Comparing the excitement around Nvidia to the hype that CES once saw when Apple (AAPL) co-founder Steve Jobs unveiled the iPhone in 2007, he added: “There’s something different. There is something new.” Nvidia’s current position as a chip supplier for future in-demand products also puts it ahead of its competitors, Ives said.
“Generally speaking, we’re going to see some issues over the next six months,” Ives said. “My view is that tech stocks are up 25% this year. “I think Nvidia is well over $4 trillion along with Apple.”