I ended last year with two in-depth articles about Nvidia. I thought when I was writing “What’s Next for Nvidia Stock in 2026” that there would be no more Nvidia news for a while.
Then Nvidia completed its investment in Intel, and I wrote “Nvidia Delivers on a Key 2025 Promise,” a detailed analysis of that collaboration.
I thought at that time that January would be quiet, but I was very wrong.
Nvidia decided to enter with its announcements during CES. It almost seems like the company has nothing left to reveal during its own GTC conference in March.
The company went so far as to reveal its next generation GPU – the Vera Rubin, which is something it would usually save for the GTC.
Why the rush? Is the bubble about to burst, or is AMD’s Helios rack system, due out this year as well, putting pressure on Nvidia?
I think AMD’s Helios and Google’s TPUs made Nvidia shift gears and it shows.
Nvidia CEO Jensen Huang believes "ChatGPT’s moment for physical AI is here."Shutterstock-Glen Photo” loading=”eager” height=”540″ width=”960″ class=”yf-lglytj loader”/>
Nvidia CEO Jensen Huang believes that “ChatGPT’s moment for physical AI is here.”Photo Shutterstock-Glen
Bank of America analyst Vivek Arya and his team attended Nvidia’s ( NVDA ) CES 2026 presentation and financial analyst Q&A session on January 5. Following the event, they updated their view on shares of NVDA in a research note shared with TheStreet.
The team said Nvidia CEO Jensen Huang noted that “very high” demand for AI computing continues and announced the new Vera Rubin AI platform.
AI scaling remains on track with 5x token generation and 10x cost reduction per year.
Six new AI chips have been announced for the Vera Rubin platform, scheduled for the second half of 2026.
The company unveiled a new bridge-level context memory storage platform.
Nvidia continues to run every major LLM today.
AI will be funded by modernizing AI and changing research and development methods.
The Groq/SRAM deal could be beneficial for extremely low-latency workloads.
AI extends beyond LLM into physical AI.
China’s demand for the H200 is there, but still awaiting licenses.
A knowledgeable and careful reader will notice that the analyst team must have overlooked the fact that Google Gemini 3 was trained and runs on Google’s own TPUs, as reported by CNBC.
The team said Nvidia’s continued dominance in AI computing, networking and the ecosystem trades at just about a 19 price-to-earnings multiple, or in line with the broader S&P 500, despite its superior CAGR of more than 35% EPS and free cash flow of more than 40%.
Arya reiterated a buy rating and price target of $275, based on its estimate of a 28 multiple for its price-to-earnings multiple, excluding cash for calendar year 2027, which is within Nvidia’s historical forward-year price-to-earnings range of 25 to 56.
Weakness in the consumer-based gaming market
Competition with large public companies
Greater impact than expected due to restrictions on computing shipments to China
Busy and unpredictable sales in new businesses, data centers and machines mARKETS
Potential for decelerating capital returns
Increased government scrutiny of Nvidia’s market dominance in AI chips
Nvidia has unveiled the next generation of its Rubin AI platform, consisting of six new chips.
The Rubin platform uses extreme co-design across its six chips: Vera CPU, Rubin GPU, NVLink 6 Switch, ConnectX-9 SuperNIC, BlueField-4 Data Processing Unit (DPU), and Spectrum-6 Ethernet Switch.
“Rubin arrives at just the right time, as the demand for AI computing for both training and inference is going through the roof. With our annual cadence of delivering a new generation of AI supercomputers—and extreme codesign on six new chips—Rubin is taking a giant leap toward the next frontier of AI,” said Huang.
Related: Bank of America resets Micron stock price target, rating
The company also launched its Alpamayo family of open AI models, simulation tools, and datasets designed for reasoning-based autonomous vehicle (AV) development. According to the company, the Alpamayo family introduces chain-of-mind, reasoning-based vision language action models that bring human thinking to AV decision-making.
Huang said: “ChatGPT’s moment for physical artificial intelligence is here – when machines begin to understand, reason and act in the real world. Robotaxis are among the first to benefit. Alpamayo brings reasoning to autonomous vehicles, allowing them to think through rare scenarios, drive safely in complex environments and explain their driving decisions – it is the foundation for safe and scalable autonomy.”
More Nvidia:
Siemens and Nvidia announced the expansion of their partnership for the development of industrial and physical AI solutions.
Roland Busch, President and CEO of Siemens AG, said: “Together, we are building the Industrial AI operating system – redefining how the physical world is designed, built and run – to scale AI and create impact in the real world. By combining Nvidia’s leadership in accelerated computing and AI platforms with Siemens’ hardware, software, industrial artificial intelligence and data, we are adapting the most comprehensive to develop more powerful digital products. real-time production and accelerate technologies from chips to artificial intelligence factories.”
The companies plan to build the world’s first fully AI-powered adaptive manufacturing sites. The first, according to the plan, is the Siemens electronics factory in Erlangen, Germany, in 2026.
Related: Veteran analyst has a clear message on Intel stock
This story was originally published by TheStreet on January 7, 2026, where it first appeared in the Investing section. Add TheStreet as a favorite source by clicking here.
