Jensen Huang’s Nvidia CES Key Note Disappoints Gene Munster, But He Says ‘Don’t Read Into It’ — Here’s Why

The semiconductor giant announced a slew of AI chips, including its next-gen Vera Rubin AI system for data centers.

• Nvidia’s stock was nearly flat in Monday’s after-market session, following the company’s announcements and its CEO’s keynote at CES.
• In response, Muster said Nvidia’s position is strong, and AI demand is healthy, shrugging off concerns of a slowdown.
• NVDA rose marginally in early premarket trading on Tuesday.

Nvidia CEO Jensen Huang's keynote at the CES trade show skipped any mention of AI demand – probably the reason for the stock staying muted after-hours on Monday – and the market shouldn’t “read into it,” according to veteran tech analyst and Deepwater Asset Management co-founder Gene Munster.

Nvidia announced major AI updates at the event, including its highly anticipated Blackwell Successor, but the stock barely moved in the after-hours session on Monday. “I was disappointed there was no direct commentary on demand. My take: don’t read into it,” Munster said in a X post.

He said demand continues to run “ahead of expectations” and projected “65% or more growth this year” for the company’s revenue. “Looking back at last year’s keynote, this year’s high-level comments were similar.”

Muster has a long track record of influential calls on Apple, Big Tech, and emerging technologies like AI and autonomous vehicles.

He went on to say that Nvidia’s announcements, including a partnership with Siemens, underscore how AI hardware has emerged to the forefront of AI innovation. Nvidia’s peers, AMD and Intel, also announced a slew of processors on Monday.

Meanwhile, Nvidia executives told analysts on the sidelines of CES that demand for its H200 chips from China has remained strong, even as the company awaits approvals from both Washington and Beijing before sales can start, according to a Nikkei report.

"We do have demand ... [for H200] definitely from China," Colette Kress, Nvidia's chief financial officer, told analysts at a question-and-answer session in Las Vegas on Monday afternoon, while Huang added "demand [is] strong" when asked about the China market.

On Stocktwits, the retail sentiment for Nvidia was ‘neutral’ as the premarket trading kicked off, down from ‘bullish’ a few hours earlier. NVDA rose nearly 40% last year. Although the performance was below some of its Magnificent 7 peers, analysts remain overwhelmingly bullish about the company.

Currently, 60 of the 64 analysts covering the company have a ‘Buy’ or higher rating on the stock, according to Koyfin. The average price target of $253.54 implies a 35% upside expectation.

Nvidia’s stock, however, appeared on track to open in the green on Tuesday, going by its early premarket move. 

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