Breakfast News: Highlights From CES
January 7, 2025
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Source: Image created by JesterAI.
1. Huang Points to Cars for Nvidia’s Future Growth
Nvidia (NVDA -0.02%) stock hit an all-time high before Jensen Huang opened this year’s Consumer Electronics Show. Notably, the CEO anticipates automotive revenue of $5 billion for the company in FY25, up from $4 billion this fiscal year.
- “Generative AI will power the future of mobility, requiring both rich data and very powerful compute”: Uber (UBER -1.88%) CEO Dara Khosrowshahi announced a collaboration with Nvidia to accelerate AI-powered autonomous driving technology. Huang also unveiled a tie-up with Toyota (TM -0.29%) to use Nvidia’s autonomous driving AI products and software.
- “The ChatGPT moment for general robotics is just around the corner”: Huang showcased humanoid robots he believes could grow into a $38 billion market within the next couple of decades, as more automation is brought to warehouses and factories. Other Nvidia products launching in 2025 include next-generation graphics chips that will use Blackwell AI technology, and a $3k desktop computer capable of running large AI models.
2. AMD Announces New Graphics and Gaming Products
Elsewhere at CES, Advanced Micro Devices (AMD -4.31%) revealed a new Central Processing Unit (CPU) lineup and mobile chips, in a bid to take on Intel (INTC -0.65%).
- A 13% performance gain versus AMD’s own previous model: AMD also claims the new processor is 20% faster on average than Intel’s latest one. Due to launch later this quarter, the financial benefits could be felt fairly quickly.
- More integrated solutions for clients: The Stock Advisor rec has been flagged as having a unique advantage, due to its ability to offer both high-performance CPUs and GPUs. This contrasts to Intel and Nvidia, which currently specialize in one or the other.
3. Manic Merger Monday
The first Monday of the year brought a host of deals, including Advent International buying the owner of iconic Duke’s Mayo for $1.5 billion, and Paychex (PAYX 0.71%) revealing advanced talks to buy Paycor (PYCR).
- Fubo stock starts the week by soaring 251%: Disney (DIS -1.46%) and Fubo (FUBO -2.02%) shook hands on a new venture where Hulu+ Live TV and Fubo will be bundled together. Disney will take a 70% stake in the existing Fubo company.
- “Purely political reasons”: The blocked acquisition of U.S. Steel (X -1.56%) by Nippon Steel saw the two companies file a lawsuit against the Government, claiming that the motives behind the decision were based on politics and not business. Both cite the desire to still go ahead with the deal.
4. Trudeau Resignation Sparks Tariff Talk
Canadian Prime Minister Justin Trudeau resigned as the leader of the Liberal Party on Monday. With a new PM set to take charge in the coming months, this could help to reset the trade relationship with the U.S. and potentially set the stage for less aggressive tariffs.
- Chatter of trade policy changes: Before the news broke, the Washington Post reported that President-elect Trump’s team was looking at more limited tariffs in general, hinting at a potential reduction in the proposed 25% levy on Canadian goods.
- Trudeau approval rating at just 22%: Although this story was later dismissed by Trump, the potential for the election of a more conservative Prime Minister in Canada with higher popularity could improve relations for cross-border trade between the two countries.
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