Analyst: Expectations for Nvidia (NVDA) CEO’s Speech Were “Very High”

There were “very high expectations” for a speech yesterday by Nvidia (NVDA) CEO, Jensen Huang at the CES tech conference,  Morgan Stanley’s semiconductor analyst, Joseph Moore, said on CNBC today.

Assessing Huang’s Speech

Investors may have wanted to hear more from Huang about developments involving the chip maker’s data center business, which accounts for 85% of its revenue, Moore stated.

CES focuses on automotive and consumer technologies, and Huang did divulge important news about the company’s offerings for those markets during his speech, the analyst said.

And noting that Nvidia is still in the midst of “a very strong product cycle,” Moore said that “there was really nothing negative” in the speech. The analyst added that investors’ recent concerns about interest rates negatively impacted NVDA stock this week.

Unrealistic Expectations

According to Moore, it was unrealistic to believe that Huang would share any information about the company’s upcoming chips since it has only been shipping its current chips, known as Blackwell, for two months.

“The demand for Blackwell (chips) is very good,” but supply issues are preventing Nvidia from meeting all of the demand for it, the analyst noted. As a result, Nvidia won’t tremendously beat analysts’ mean estimates until the second half of the year when it’s able to ship many more Blackwell chips, Moore believes.

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Disclosure: None. This article is originally published at Insider Monkey.