I concluded 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 wouldn’t be any news about Nvidia for a while.
Then, Nvidia completed its investment in Intel, and I wrote “Nvidia makes good on a key 2025 promise,” a detailed analysis of that collaboration.
I thought at that point that January would be quiet, but I was very wrong.
Nvidia decided to go all in with its announcements during CES. It almost looks as if the company may have nothing left to reveal during its own GTC conference in March.
The company went as far as unveiling its next generation of GPUs — Vera Rubin, which is something it would usually save for GTC.
Why the rush? Is the bubble about to burst, or is AMD’s Helios rack system, which is also set to launch this year, putting pressure on Nvidia?
I think it is AMD’s Helios and Google’s TPUs that have made Nvidia shift gears, and it shows.
Bank of America analyst Vivek Arya and his team attended Nvidia’s (NVDA) CES 2026 keynote and financial analyst Q&A session on January 5. Following the event, they updated their opinion on NVDA stock 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.
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AI scaling remains on track, with five times the token generation and 10 times the cost reduction per year.
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Six new AI chips were announced for the Vera Rubin platform, slated for the second half of 2026.
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The company unveiled a new pod-level context memory storage platform.
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Nvidia continues to run every single major LLM today.
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AI will be funded by the modernization of AI and the shifting of R&D methods.
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The Groq/SRAM deal could be beneficial for extremely low-latency workloads.
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AI is scaling beyond LLMs, into physical AI.
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China’s H200 demand is there, but it is still awaiting licenses.
An informed and careful reader will notice that the analyst team must have overlooked the fact that Google Gemini 3 was trained and is running on Google’s own TPUs, as reported by CNBC.
The team said Nvidia’s continued dominance in AI compute, networking system, and ecosystem is trading at just approximately 19 multiple price to earnings ratio, or in line with the broader S&P 500 index, despite its superior, greater-than-35% EPS CAGR and upwards of 40% free cash flow.
Arya reiterated a buy rating and the target price of $275, based on 28 multiple his estimate for price-to-earnings ratio excluding cash for calendar year 2027, which is within Nvidia’s historical forward year price-to-earnings range of 25 to 56.
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Weakness in the consumer-driven gaming market
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Competition with major public firms
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Larger-than-expected impact from restrictions on compute shipments to China
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Lumpy and unpredictable sales in new enterprise, data center, and autos
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Potential for decelerating capital returns
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Enhanced government scrutiny of Nvidia’s dominant market position in AI
chips
Nvidia unveiled its next-generation AI Rubin platform, consisting of six new chips.
The Rubin platform uses extreme co-design across its six chips: the Vera CPU, Rubin GPU, NVLink 6 Switch, ConnectX-9 SuperNIC, BlueField-4 data processing unit (DPU), and Spectrum-6 Ethernet Switch.
“Rubin arrives at exactly the right moment, as AI computing demand 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 across six new chips — Rubin takes a giant leap toward the next frontier of AI,” stated 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-thought, reasoning-based vision language action models that bring humanlike thinking to AV decision-making.
Huang stated: “The ChatGPT moment for physical AI 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’s the foundation for safe, scalable autonomy.”
More Nvidia:
Siemens and Nvidia announced an expansion of their partnership for the development of industrial and physical AI solutions.
Roland Busch, president and CEO of Siemens AG, stated: “Together, we are building the Industrial AI operating system — redefining how the physical world is designed, built and run — to scale AI and create real-world impact. By combining Nvidia’s leadership in accelerated computing and AI platforms with Siemens’ leading hardware, software, industrial AI and data, we’re empowering customers to develop products faster with the most comprehensive digital twins, adapt production in real time and accelerate technologies from chips to AI factories.”
The companies plan to build the world’s first fully AI-driven, adaptive manufacturing sites. The first one, according to the plan, is the Siemens Electronics Factory in Erlangen, Germany, in 2026.
Related: Veteran analyst has blunt message on Intel stock
This story was originally published by TheStreet on Jan 7, 2026, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.