Skip to main content

Market Overview

Nvidia At CES: 3 Big Announcements Leave Investors With 5 Major Questions

Nvidia At CES: 3 Big Announcements Leave Investors With 5 Major Questions

Providing takeaways from the Consumer Electronics Show, RBC Capital Markets delved on the three major items unveiled by NVIDIA Corporation (NASDAQ: NVDA) and five key investor questions.

3 Big Announcements

Analysts Mitch Steves and Amit Daryanani noted that Nvidia announced a partnership with Audi to create an AI car, the new Shield advanced Streamer product and a new GeForce NOW for MAC and PC.

RBC Capital elaborated on these products:

  • Nvidia is looking to have Audis with Level 4, which refers to fully driverless vehicles outside of extreme conditions by 2020.
  • On Streamer, the new product will be built with streaming support for 4K content and Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) Google Assistant, priced at $199 for Shield.
  • The new GeoForce allows for streaming games directly to Facebook Inc (NASDAQ: FB) Live.

5 Remaining Questions

Based on its discussions, RBC Capital Markets listed five top investor questions to the company:

    1. Will gaming grow in calendar year 2017?
    2. Will a competitor such as Advanced Micro Devices, Inc. (NASDAQ: AMD) begin to eat into Nvidia's growth trajectory this year?
    3. Will autonomous driving become a meaningful piece of revenue within the next year?
    4. How large is the Artificial Intelligence opportunity?
    5. What is the new gross margin profile post-IP roll-off?

Net-net, RBC Capital Markets said it remains bullish on Nvidia, as it remains the premier public pure play on AI, with notable product lines addressing virtual reality and autonomous driving as well. The firm said it is most impressed by the Audi partnership creating a clear timetable to driverless vehicles by 2020.

RBC Capital Markets has an Outperform rating on the shares of Nvidia.

Image Credit: By The Conmunity - Pop Culture Geek from Los Angeles, CA, USA (CES 2012 - NVIDIA) [CC BY 2.0], via Wikimedia Commons


Related Articles (AMD + FB)

View Comments and Join the Discussion!

Posted-In: Analyst Color Long Ideas News Short Sellers Travel Events Analyst Ratings Movers Best of Benzinga

Latest Ratings

GIKColliers SecuritiesInitiates Coverage On14.0
SANWLake StreetInitiates Coverage On6.0
LILAMorgan StanleyDowngrades15.0
BEJP MorganUpgrades36.0
NEXACredit SuisseUpgrades11.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at