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Jensen Huang (Patrick T. Fallon/Getty Images)

Wall Street’s key takeaways from Nvidia CEO Jensen Huang’s speech and analyst Q&A at CES

Jensen Huang talks, Wall Street reacts.

Luke Kawa

When the leader of the biggest publicly traded company in the world delivers a 90-minute presentation, Wall Street is going to have some things to say about it.

Here’s what the sell side highlighted from Nvidia CEO Jensen Huang’s keynote address at the Consumer Electronics Show in Las Vegas on Monday, as well as the Q&A that the company held with analysts.

JPMorgan analyst Harlan Sur:

  • The confirmation that Vera Rubin chips are in full production and poised for a ramp in the second half of this year should be seen as “putting to rest recent concerns about potential delays.”

  • “NVDA has deftly positioned itself to benefit from multiple aspects of physical AI development — from data center compute (model training), to simulation (Omniverse) to edge devices (Jetson Thor) — which in aggregate could potentially drive the next leg of revenue growth for NVDA,” with Jensen Huang indicating that the AV revenue opportunity would be well above $10 billion by 2030.

  • The steady drumbeat of Nvidia championing the benefits of its GPUs relative to custom chips continues. The chip designer is “arguing that rivals (i.e. AI XPUs) will be hard pressed to keep pace with the performance of Vera Rubin and subsequent platforms with a ‘one chip at a time’ approach to design. We think to some degree there is validity to this notion, though growth in XPU volumes also clearly point to a TCO [total cost of ownership] benefit that hyperscalers are able to realize (in other words, AI ASICs continue to gain traction and capture share despite NVDA’s dominance in pure performance).”

  • It’s leaning in to inference-specific offerings: “NVDA also introduced a new context memory storage controller that aims to address the challenge of increasingly large context windows, opening up a new TAM [total addressable market] for the company where we think it will quickly gain traction with customers given the seamless integration of this storage system into its Vera Rubin platform offering.”

Morgan Stanley analyst Joseph Moore:

  • “Management described Rubin as being in ‘full production,’ highlighting meaningful improvements to manufacturability at the system level following their learnings with Blackwell. Rubin compute board assembly time has been reduced to ~5 minutes versus ~2 hours for Blackwell, and we saw on video the first rack being deployed. The timeline for launch remains second half of 2026, but revenue should be material around that time.”

  • “Management highlighted its unique position as the only chip company procuring these large quantities of DRAM and HBM directly, and with so much of the ecosystem supporting their growth they see themselves as having an advantage due to that scale.”

  • “No major surprises, but confidence on Rubin should be positively received given competitive noise exiting 2025 around broader TPU traction. While the obvious pushback is that Rubin specs and timelines haven’t changed, the stock is still 10% below highs immediately following Jensen’s $500 billion comments at GTC DC, numbers which have since moved higher post earnings and were reinforced in spirit today during the Q&A and fireside. With no hedging on supply or demand, we think enthusiasm can return as that plays out in numbers this year.”

Bank of America analyst Vivek Arya:

  • “AI scaling remains on track, with 5x token generation, 10x token cost reduction per year.”

  • Answering the where-does-the-money-come-from question: “AI to be funded by modernization of AI (repurposing $10 trillion of computing funding last decade), shifting of R&D methods.”

  • China H200 demand is there, but still awaiting licenses”

Wedbush Securities analyst Dan Ives:

  • Overall, Huang’s address “fully set the tone for the AI Revolution heading into 2026 as the company laid the path for the next stage of the AI Revolution: physical AI.”

  • On Nvidia’s Alpamayo platform for autonomous vehicles: “We believe this new foundation model designed for AVs are an incremental positive for Tesla as the company looks to accelerate its autonomous vehicle technology and capitalize on the AV industry over the next decade.”

  • “We walked out of the event feeling even more bullish about Nvidia and the overall AI Revolution as the next stage of investments and technology are on the horizon that can facilitate a new age for the technology world with companies around the world are set to capitalize on $3 trillion to $4 trillion of AI Cap Ex hitting the market over the next 3 years.”

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Lucid cuts 12% of its US workforce in a profitability push

EV maker Lucid announced on Friday it is laying off 12% of its US workforce as part of its efforts to improve profitability.

This is Lucid’s third round of layoffs since March 2023. At the end of 2024, the company said it had 6,800 employees globally.

“This difficult but necessary decision was made to improve operational effectiveness and optimize our resources as we continue on our path toward profitability,” interim CEO Marc Winterhoff told employees in an email published by Business Insider. The company has been without a permanent CEO since February 2025.

Lucid has worked to boost its cash reserves in recent months. Late last year it announced plans to raise $875 million through a private offering of convertible senior notes due in 2031.

“This difficult but necessary decision was made to improve operational effectiveness and optimize our resources as we continue on our path toward profitability,” interim CEO Marc Winterhoff told employees in an email published by Business Insider. The company has been without a permanent CEO since February 2025.

Lucid has worked to boost its cash reserves in recent months. Late last year it announced plans to raise $875 million through a private offering of convertible senior notes due in 2031.

markets

The Supreme Court’s tariff ruling isn’t sweeping relief for automakers, but it isn’t nothing either

The Supreme Court on Friday struck down a significant chunk of President Trump’s tariffs, but the decision isn’t a cause for automakers to fully exhale.

Friday’s ruling relates to tariffs imposed under the International Emergency Economic Powers Act and not Section 232. The 25% tariffs on automobiles and auto parts were imposed under Section 232, so those tariffs remain in place.

Still, it’s worth noting that automakers including Ford, GM, and Stellantis aren’t completely on the outside looking in. IEEPA tariffs did cover certain machinery, lower-cost raw materials, and components, which account for a small chunk of automaker production costs.

According to the Center for Automotive Research, IEEPA tariffs account for about $250 per vehicle for the big three Detroit automakers, or $902 million in costs. That’s a far cry from the Section 232 tariff impact of $4,240 per vehicle, per the think tank, but it’s not nothing.

The modest bump in auto stocks compared to retailers on Friday reflects the light relief.

Still, it’s worth noting that automakers including Ford, GM, and Stellantis aren’t completely on the outside looking in. IEEPA tariffs did cover certain machinery, lower-cost raw materials, and components, which account for a small chunk of automaker production costs.

According to the Center for Automotive Research, IEEPA tariffs account for about $250 per vehicle for the big three Detroit automakers, or $902 million in costs. That’s a far cry from the Section 232 tariff impact of $4,240 per vehicle, per the think tank, but it’s not nothing.

The modest bump in auto stocks compared to retailers on Friday reflects the light relief.

markets
Luke Kawa

Nvidia nears $30 billion investment in OpenAI’s funding round, the FT reports

Nvidia is close to investing $30 billion in OpenAI as part of its long-discussed funding round, per the Financial Times.

Bloomberg had previously reported that Nvidia would be investing $20 billion in this round.

The FT says that this investment will effectively be replacing a bigger planned pact between the two companies. The Wall Street Journal had originally reported in late January that Nvidia’s investment of up to $100 billion in OpenAI, which was announced in September, had “stalled” amid private criticisms of the ChatGPT maker by CEO Jensen Huang.

As Microsoft, SoftBank, or Oracle could tell you, being viewed as overly exposed to OpenAI has not been a boon for stocks in recent months.

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