Las Vegas, Nevada – Nvidia CEO Jensen Huang presented the latest developments at the Consumer Electronics Show (CES) 2025 on January 6. The company’s revenue in 2024 more than doubled from the previous year, surpassing analysts’ projections. Nvidia anticipates even more growth in the current quarter compared to Wall Street’s forecasts. This surge is largely attributed to Nvidia’s innovative Blackwell artificial intelligence chip, receiving substantial investments from major tech companies.
The company reassured investors regarding concerns about DeepSeek, emphasizing the ongoing need for significant processing power in more efficient AI models. Concurrently, surveys conducted by the Consumer Board and the University of Michigan indicate escalating worries about the economy and inflation. Market instability has been underscored by the 10-year Treasury yield dropping below that of the 3-month note, a telltale sign of a looming recession within the next 18 months.
While Nvidia reaps substantial profits and big tech companies push forward with capital expenditures, wavering confidence in the U.S. economy is apparent. It remains uncertain whether the tech industry can help steady the economic ship amid growing concerns. Nvidia’s recent financial performance has been impressive, surpassing expectations and providing encouraging guidance for the upcoming quarter, even with a slight slowdown in growth. CEO Jensen Huang remains bullish on the future of AI, predicting a significant increase in computing power for next-generation models.
On a different note, both the S&P 500 and Nasdaq Composite broke their four-day losing streaks, posting marginal gains. However, the Dow Jones Industrial Average experienced a slight decline. In Asia-Pacific markets, Japanese shares saw modest gains while Seven & i shares plummeted after a failed management buyout attempt. In economic news, China is expected to announce adjustments to its consumer price inflation target and budget deficit during its annual parliamentary gathering.
The U.S. yield curve inversion has also raised concerns, with the 10-year Treasury yield falling below that of the 3-month note, a sign historically associated with impending recessions. Lastly, Tesla CEO Elon Musk deferred a scheduled visit to India due to pressing Tesla commitments, amid discussions about the potential for Tesla to establish a manufacturing base in the country. India’s efforts to attract Tesla include a revised electric vehicle tariff policy aimed at reducing import duties and encouraging EV manufacturing.
