Listen and subscribe to Opening Bid on Apple Podcasts, Spotify, YouTube or wherever you discover your favorite podcasts.
The Nvidia (NVDA) CES-induced sell-off attack plan.
On the glitzy tech gathering this Monday, Nvidia CEO Jensen Huang shared that the corporate has kicked production of its much-anticipated Blackwell chip into high gear. “We’re racing to get Blackwells into every data center on the earth,” he told a packed house while sporting a black shiny alligator leather jacket.
The corporate also unveiled a bunch of latest technology to support its growing ambitions in robotics and driverless cars, Yahoo Finance tech editor Daniel Howley reported.
However the Street wanted more from its stock darling.
Read More: Why AMD looks undervalued
As of two:54:04 PM EST. Market Open.
Huang’s more subdued words relative to elevated expectations combined with general investor skittishness sent Nvidia right 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 within the room when Huang spoke at CES and thinks the sell-off is way overdone.
“I believe what Jensen’s laying out is that 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’s just the start of the revolution but [the sell-off fear] was investors [getting] apprehensive.”
This embedded content shouldn’t be available in your region.
“We could return to quarters where the stock sells off, bears come out of hibernation mode, stock goes to $100, then impulsively, two months later, back as much as 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 fact is you come out of that more bullish fairly than less bullish due to what the market opportunity means when it comes to robotics, autonomous, and the longer term,” he said.
From Ives’s perspective, the longer term for Nvidia and AI looks shiny. In a single analogy, he placed more traditional investments equivalent to healthcare or finance within the bucket akin to a “minivan going 40 miles per hour” while tech stocks equivalent to Nvidia were a “Ferrari within the left lane.”
Comparing excitement around Nvidia to the excitement CES once saw when Apple (AAPL) co-founder Steve Jobs unveiled the iPhone in 2007, he added, “There’s something different. There’s something latest.” 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 following six months,” Ives said. “My view is tech stocks are up 25% this yr. I believe Nvidia is well over $4 trillion together with Apple.”