NVIDIA Stock Kicks Off 2025 Strong, Jensen Huang Highlights Key Updates at CES

TradingKeyJan 7, 2025 7:41 AM

TradingKey - On Monday, NVIDIA CEO Jensen Huang took the stage at CES in Las Vegas, unveiling a series of new products. Among the highlights was an updated GeForce GPU, built on the same Blackwell architecture used in NVIDIA’s AI accelerators. Unlike traditional GPUs, which render images by calculating shadows for each pixel, the new technology leverages AI to predict subsequent frames, marking a significant shift in graphics processing.

NVIDIA’s gaming business continues to show steady growth, with revenue up 15% year-over-year in the latest quarter. However, the company’s data center segment remains its primary growth engine, with revenue doubling for six consecutive quarters, reaching over $30 billion in the most recent quarter.

Huang also highlighted two key developments for data center: NVIDIA’s NIM (NVIDIA Interface Module) system and the Llama Nemotron language model. The NIM system is designed to provide developers with self-hosted GPU-accelerated inference microservices, enabling organizations to run AI models across cloud, data center, and workstation environments. With its efficiency and flexibility, NIM is expected to have wide applications in fields such as autonomous driving, smart manufacturing, and pharmaceuticals.

Source: Nvidia Website

The Llama Nemotron language model marks a leap forward in language AI, with significant improvements in accuracy and efficiency. Huang emphasized its ability to enhance natural language processing and other AI-driven applications.

TradingKey analyst Frank Li notes that NVIDIA’s strong competitive position is built on the foundation of its CUDA ecosystem. Both Nvidia NIM and Llama Nemotron are heavily reliant on CUDA, which provides developers and enterprise users with extensive resources for parallel computing. Through CUDA’s capabilities, Nvidia NIM can efficiently run large-scale AI models on GPUs, significantly improving inference speed and performance.

Llama Nemotron’s integration with CUDA enhances the training and inference processes, making them more efficient and adaptable. Its standardized APIs make it easier for developers to incorporate into existing AI applications, further leveraging CUDA’s computational power. This combination reinforces NVIDIA’s role as both a hardware leader and a key enabler of software ecosystems.

Even before Jensen Huang’s speech, NVIDIA shares rose 3.4% on Monday, reaching a new all-time high since November 7, driven by optimism about the prospects of artificial intelligence. The previous week, Microsoft announced plans to invest $80 billion in building AI data centers, with a significant portion expected to utilize NVIDIA’s hardware.

Furthermore, Foxconn’s latest earnings results provided positive signals for NVIDIA’s Blackwell production ramp-up. As one of NVIDIA’s key manufacturing partners, Foxconn reported strong demand for AI servers in its latest monthly performance update, highlighting healthy growth trends across the semiconductor industry.

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