Shares of Nvidia (NASDAQ: NVDA) were moving higher today after investors responded well to a series of announcements at CES today, which included new chips for generative artificial intelligence (AI) technologies, PCs and gaming, and new partnerships.
As a result, the stock was up 5.4% as of 2:34 p.m. ET.
Nvidia does it again
The AI stock rose quickly this morning even before its CES presentation as investors anticipated good news.
During its presentation, Nvidia unveiled a slew of new chips, including new desktop graphics chips to make it easier to use AI on a PC. The company also announced new GeForce RTX graphics cards, which offer 4K resolution and ray tracing, meaning they can create an image by tracking individual rays of light.
Nvidia said these new components were an “order of magnitude” better than computers powered by Intel chips. Nvidia hasn’t traditionally been a major player in the large market for PC chips, but these new releases and its prowess in AI could help it gain market share in that subsector of the semiconductor industry.
Additionally, Nvidia announced new partnerships with companies like Amgen to use Nvidia’s generative AI tools for drug discovery and data insights; Getty Images, which will use Nvidia’s Picasso for a new image generation service, and with autonomous vehicle developers such as Li Auto.
What’s next for Nvidia?
Nvidia is clearly in the driver’s seat in the AI race after its revenue more than tripled in its most recent quarter, and the company is unlikely to relinquish that leading position without a fight. Today’s news shows that Nvidia has no intention of slowing down and will continue to innovate and launch breakthrough products.
If you’re looking for an AI stock to own, Nvidia still seems like a no-brainer.
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Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool recommends Amgen and Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short February 2024 $47 calls on Intel. The Motley Fool has a disclosure policy.
Why Nvidia Stock Jumped Today was originally published by The Motley Fool
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