Overview
This week’s Consumer Electronics Show (CES) in Las Vegas is set to be pivotal for Nvidia (NASDAQ: NVDA), with key speeches from CEO Jensen Huang and AMD CEO Lisa Su. The event is expected to influence Nvidia's stock performance and the broader AI infrastructure sector.
Current Stock Performance
Nvidia is currently trading at $188.85, having found support at $172.00, with additional support levels at $164 and a critical level at $152.91. Analysts suggest that a move higher is possible, with the $210 level acting as a significant barrier for further gains in a bull market.
Key Announcements Expected
Investors are keenly awaiting Huang’s presentation for potential announcements regarding next-generation AI accelerators, particularly beyond the latest Blackwell platform. Comments on AI data center progress and sustainability of customer demand will be closely monitored, especially in light of recent concerns regarding AI capital expenditures and corporate debts.
AMD's Competitive Position
AMD's CEO Lisa Su is under pressure to demonstrate credible momentum with the MI300 series of AI accelerators, as the company seeks to establish competitive strength against Nvidia's dominance in the data center chip market. The CES updates come at a crucial time following disappointing earnings from Oracle and Broadcom, which have negatively impacted AI-related stocks.
Earnings Outlook
Looking ahead, Nvidia's earnings outlook remains positive, with analysts projecting earnings per share (EPS) of $4.69 for the fiscal year ending in January, reflecting a year-on-year growth of 56.9%. This valuation places the stock at approximately 40 times forward earnings, which is relatively moderate compared to other growth stocks. By January 2027, EPS is expected to rise to $7.57, indicating a 61% year-on-year increase and a forward earnings ratio of 24.8x.
Market Sentiment and Future Prospects
After a 38% gain in 2025, Nvidia's stock has remained flat over the past three months, potentially setting the stage for a near-term rally if tech stocks continue to perform well. The CES event could also trigger institutional buying in January, further influencing Nvidia's stock trajectory.