Nvidia’s Next Target
Heading into 2025, Nvidia was facing tough questions about whether the chipmaker central to the artificial intelligence boom could sustain its astronomical market run.
Presentation at CES
Based on the company’s presentation at the Consumer Electronics Show on Monday, investors appear to believe that the tech giant, and the A.I. surge more broadly, has more room to rally.
Shares Up
Nvidia’s shares are up again in premarket trading on Tuesday, after hitting a record on Monday in anticipation of the C.E.S. presentation. The chip giant’s market value now stands at $3.67 trillion, or more than double the combined market capitalizations of AMD, Arm, Broadcom, and Intel.
T.L.D.R. on the Presentation
Jensen Huang, Nvidia’s rock-star co-founder and C.E.O. (who donned a fancier version of his trademark leather jacket for his presentation), announced tools for so-called physical A.I., including ways to help better train robots.
Future of Robotics
He also said Nvidia would provide driver-assistance chips and software for Toyota, the world’s biggest car manufacturer, adding to its list of automotive partners. And his company will also help Uber develop its self-driving technology, with the ride-hailing giant’s millions of daily trips furnishing data to train A.I. models.
Nvidia’s Vision
Nvidia presented a bullish view for dominating A.I. in the physical world, as well as data-center chips. Huang, speaking in front of an array of humanoid robots, said that "the ChatGPT moment for general robotics is just around the corner." He predicted that the market for such robots could reach $38 billion in the coming decades.
More
More broadly, Huang described a future populated by millions of such robots, autonomous vehicles, and automated factories.
Underlying the Announcements
Nvidia does more than data-center chips, a hugely lucrative business that’s under pressure from the company’s own top customers moving to lessen their dependence on its A.I. processors. (That said, Microsoft’s recently announced $80 billion A.I. spending plan is expected to include purchases of Nvidia chips.)
Investors Need Not Worry
It also suggested that investors need not worry so much about the A.I. boom stalling out anytime soon.
HERE’S WHAT’S HAPPENING
- Crude oil prices rise after President Biden imposes offshore drilling bans.
- McDonald’s drops diversity targets for its employees and suppliers.
- Shares in Tencent tumble after the company is added to a U.S. military blacklist.
- Two giants of the photo-licensing industry agree to combine.
Trump and Musk Tag-Team the World
President-elect Donald Trump has already kept global leaders and investors on edge with a threat to impose a wave of new tariffs on Day 1.
A Recap
- Canada’s politics were upended on Monday by the resignation announcement of Justin Trudeau as prime minister. Trump had repeatedly needled Trudeau, calling him the governor of what he has referred to as the "51st state" despite the Canadian leader going to Mar-a-Lago to try to persuade the president-elect to back off his tariff threat.
- Last month, Trump said he wanted to see U.S. control of Greenland, reviving speculation that he was interested in buying the Danish territory.
- Musk has suggested that Britain isn’t safe under Prime Minister Keir Starmer: "America should liberate the people of Britain from their tyrannical government," he posted on X.
- Musk has also weighed into politics in Germany and Italy — whose prime minister, Giorgia Meloni, is a friend of his — over immigration.
Could Musk’s Social Media Attacks Backfire on Him and His Business Interests?
The costs could be huge: Regulators in Britain and the European Union are closely scrutinizing tech platforms that fail to rein in misinformation or posts that encourage harmful social behavior, potentially leading to hefty fines as Musk is well aware of.
The Trump and Musk Fusillades are Hitting Markets
Mohit Kumar, an economist at Jefferies, forecast on Tuesday that stock indexes most likely won’t repeat 2024’s blockbuster performance. One reason: "High on the uncertainty list are tariffs and fiscal policies of the Trump administration," he wrote.
The Fubo Deal’s Winners
Just a week into 2025, the media industry got its first consequential transaction: Disney buying 70 percent of Fubo, the video service that had sued to block the media giant’s plan to create Venu, a sports streaming joint venture with Fox and Warner Bros. Discovery.
The Most Likely Winners
- Bob Iger: After years of questions about Disney’s plans for Hulu — the company now owns all of the streaming service — the Disney chief is effectively offloading what the analyst Richard Greenfield told DealBook was "the least exciting part" of Hulu.
- Fox and Warner Bros. Discovery: Both companies, along with Disney, will pay a combined $220 million to Fubo. (Disney will also extend Fubo a $145 million loan.) They appear to be betting that paying up to settle with Fubo will cost less than the benefits they expect to get from Venu.
- Edgar Bronfman Jr., Fubo’s executive chairman: Monday’s agreement validates the media mogul’s decision to try to block Venu.
The Questions
- Are Venu’s antitrust problems really over?
- How will the new Fubo do?
The Speed Read
- Deals: Fubo-Disney deal
- Politics and Policy: Trump’s tariffs and Musk’s social media attacks
- Best of the Rest: Consumer Financial Protection Bureau plans to sue Vanderbilt Mortgage
Conclusion
Nvidia’s presentation at CES has sparked optimism about the company’s future, particularly in the realm of artificial intelligence. The chipmaker’s shares have surged, and investors are bullish on its prospects. Meanwhile, Trump and Musk are making headlines with their global influence, from tariffs to social media attacks. The Fubo deal has also raised questions about the future of sports streaming and antitrust regulations. As the year unfolds, it will be interesting to see how these developments play out.
FAQs
Q: What is Nvidia’s next target?
A: Nvidia’s next target is the artificial intelligence boom, particularly in the realm of physical AI and robotics.
Q: What is the Fubo deal?
A: The Fubo deal is a transaction between Disney and Fubo, a video service, in which Disney will buy 70 percent of Fubo.
Q: What are the implications of the Fubo deal?
A: The Fubo deal has implications for the future of sports streaming and antitrust regulations.
Q: What is Trump’s stance on tariffs?
A: Trump has threatened to impose a wave of new tariffs on Day 1.
Q: What is Musk’s stance on social media?
A: Musk has suggested that Britain isn’t safe under Prime Minister Keir Starmer and has also weighed into politics in Germany and Italy over immigration.
