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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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SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

markets

Nike sinks to lowest level since 2014 after warning of “challenged” sales environment in Q4 report

Did Nike do it?

Investors had a mixed reaction after the global sports apparel company reported its fourth quarter earnings on Tuesday after the bell. Shares initially rose 5% as Nike beat out Wall Street expectations amid a hefty tariff refund bonus. However, the stock then sank to its lowest level since August 2014 in postmarket trading.

Here are the Q4 numbers:

  • Revenue of $11.0 billion (estimate: $10.8 billion).

  • Adjusted earnings per share of $0.20 (estimate: $0.12).

Ahead of this report, Nike warned that results would be flattered by a one-time tariff refund (now estimated at roughly $0.52 per share for the bottom line). That gave the company an extra cushion in snapping its streak of seven quarters of year-over-year profit declines.

Over the past year, the company had been punished by tariffs on imported goods, stagnant consumer spending, and increasing competition from other footwear brands like New Balance, Adidas, and Hoka.

Outgoing CFO Matthew Friend deemed it an “increasingly challenging operating environment, where sell-through remains challenged.”

markets

Rocket Lab deal lifts space stocks

Shares of Rocket Lab are surging after announcing an $8 billion acquisition of satellite communications operator Iridium Communications, helping lift a broader basket of space-related stocks as investors piled back into the sector.

Planet Labs, AST SpaceMobile and Redwire all traded higher alongside Rocket Lab, extending gains in an industry that has drawn enhanced investor attention in recent months in light of the strategic importance that governments place on space and satellite communications infrastructure.

In a presentation, Rocket Lab’s management called the purchase “a shortcut” for its satellite communications business.

Under the terms of the agreement, Iridium shareholders will receive $27 in cash and Rocket Lab stock, valuing Iridium at $54 per share. Backed by a $3.6 billion bridge loan committed by Deutsche Bank and Wells Fargo, Rocket Lab absorbs Iridium’s globally licensed spectrum and an active base of 2.5 million subscribers.

Rocket Lab has also remained one of the most active launch providers in the sector. The company completed its 12th launch of the year last week, maintaining one of the highest launch cadences among commercial space companies.

Today's rally helps offset a brutal stretch for the group. Rocket Lab shares had fallen over 35% over the prior month, while Planet Labs stock was down more than 40% and AST SpaceMobile stock was down around 30% over the same window.

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