Nvidia shares rose 1.7% to a new high on Tuesday after CEO Jensen Huang announced the company's next family of gaming chips and hinted that robotics technology is in full swing.
In a keynote Monday night at CES in Las Vegas, a major technology trade show showcasing the latest gadgets, Huang announced the latest chips for desktop and laptop PCs that he says will offer higher-quality images. I promised.
The stock had already climbed to new highs on Monday ahead of the CEO's speech, but was trading at $151.94 as of around 9:30 a.m. Tuesday.
GeForce RTX 50 series chips use the same Blackwell architecture as the company's artificial intelligence processors and are twice as fast as previous chips, Huang said. The chip will be preinstalled in computers priced between $550 and $2,000 that begin shipping in March, the company said.
“Can you imagine, Mr. Blackwell, you have this amazing graphics card? Let's scale it down and put it in there,” Huang said, holding up his laptop.
CES 2025 featured more robotics and artificial intelligence capabilities than ever before, and the longtime Nvidia CEO hinted that advanced robotic infrastructure is on the horizon.
“The ChatGPT moment in general robotics is just around the corner,” he said Monday night.
He introduced an AI model called Cosmos that can generate training videos for robots and self-driving cars, which he said could significantly reduce the cost of current training methods.
“With all the enabling technologies I've been talking about, we're going to see very rapid advances, incredible advances in robotics in general over the next few years,” he added.
Nvidia's market capitalization has soared in recent years to more than $3.5 trillion, making it the world's most valuable company, surpassing Apple in November 2024.
Since its founding in the early 1990s, Nvidia has been known for selling graphics processing units (GPUs) used to create video games. The first chip in 1999 was created to draw triangles and polygons for 3D games.
But NVIDIA has reached new heights by selling artificial intelligence chips to cloud vendors and tech giants like Microsoft, Meta and Google, outpacing rivals like Advanced Micro Devices and Intel. The company's dominance in the AI market has led to some increased regulatory scrutiny from watchdog groups in the United States, Europe, South Korea and China.
Currently, game sales are just a trickle of Nvidia's business. In the quarter that ended in October, gaming sales accounted for less than 10% of Nvidia's total revenue. In comparison, 88% of revenue came from data center chips.
However, the newly announced RTX 50 series chips are geared towards gaming with higher frame rates, the ability to see more facial details on characters, improved graphics, and higher-resolution images.
The new generation of gaming chips includes a variety of configurations. The RTX 5090 – the most powerful and therefore most expensive product – will retail for $1,999 each. Nvidia says it's twice as fast as the previous generation RTX 4090, which had 92 billion transistors.
The chip is optimized to run AI models, allowing creators to incorporate generative AI into video games.
Nvidia says the chip can also run large language and image generation models from companies like Meta.
Nvidia's gaming business grew 15% year over year, overshadowed by strong growth in AI chip sales. The company's data center revenue has doubled for six consecutive quarters, topping $30 billion in the most recent quarter.
“We're now both a gaming company and an AI company, but the gaming side benefits tremendously from the fact that we're still an AI company,” Justin Walker, Nvidia's senior director of product, said in a press call. I mentioned it in
