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The Nvidia (NVDA) CES-induced sell-off attack plan.
At the glitzy tech meeting last Monday, Nvidia CEO Jensen Huang said the company has kicked production of its long-awaited Blackwell chip into high gear. “We are racing to get Blackwells into every data center in the world,” he told a packed audience while wearing a black shiny alligator leather jacket.
The company also unveiled a host of new technology to support its growing ambitions in robotics and self-driving cars, tech editor Yahoo Finance Daniel Howley reported.
But the Street wanted more from his darling.
Read more: Why AMD seems undervalued
Closing: 4:00:01 PM EST
Huang’s more subdued words combined with the high expectations, combined with the skittishness of general investors, sent Nvidia into a downward spiral. The bears sent the shares down 6% on Tuesday, despite hitting an all-time high a day earlier.
The stock is now down 8% from the previously mentioned highs.
Wedbush tech analyst Dan Ives was in the audience when Huang spoke at CES and thinks the sell-off is far exaggerated.
‘I think Jensen is indicating that this is still in its infancy [in AI],” Ives told Yahoo Finance editor-in-chief Brian Sozzi on the Opening Bid podcast (see video above; listen below). ‘It’s just the beginning of the revolution, but [the sell-off fear] were investors [getting] concerned.”
“We could go back to quarters where stocks sell off, bears come out of hibernation, stocks go to $100, and then suddenly, two months later, they’re back at record levels,” Ives continued. “These knee-jerk reactions can easily scare you because they say nothing about short-term demand.”
“The reality is you’re going to come out of that bullish rather than less bullish because of what the market opportunity means in terms of robotics, autonomous behavior and the future,” he said.
From Ives’ perspective, the future for Nvidia and AI looks bright. In one analogy, he placed more traditional investments like healthcare or finance in the bucket, akin to a “minivan going 40 miles per hour,” while technology stocks like Nvidia were a “Ferrari in the left lane.”
He compared the excitement around Nvidia to the buzz CES once saw when Apple (AAPL) co-founder Steve Jobs unveiled the iPhone in 2007, adding, “There’s something different. There is something new.” Nvidia’s current position as a chip supplier for future high-demand products also gives Nvidia a competitive edge, Ives said.
“Overall, we’re going to see some white knuckles over the next six months,” Ives said. “My view is that tech stocks are up 25% this year. I think Nvidia, together with Apple, is worth over $4 trillion.”