Jensen Huang and Nvidia's Dilemma: Can the AI Revolution Maintain Its Momentum After CES 2026?

Wall Street Analysis Uncertainty Dominates Nvidia's Future Outlook

Jensen Huang's presentation at CES 2026 has created a significant rift among investors. Nvidia (NVDA) CEO showcased an ambitious strategy with the introduction of the Vera Rubin platform—six revolutionary chips ready for mass production this year—but Wall Street's projections on whether the semiconductor giant can sustain its exponential growth remain deeply divided.

Speculative Bubble or Real AI Economy?

Dan Ives, Wedbush analyst, outright rejects the notion of a tech bubble. His argument is compelling: investors dismissing AI as an exaggeration are ignoring a fundamental fact. “The amounts of capital flowing into this sector reach trillions of dollars,” Ives noted during his analysis for Yahoo Finance.

What’s interesting is that, while Jensen Huang emphasizes advances in physical AI applications—autonomous robotics, driverless vehicles, edge computing—financial analysts keep their focus on the true profit engine: data centers and their sustained profitability.

Opposing Perspectives: Extreme Optimism vs. Prudent Skepticism

The contrast of opinions is remarkable. Ives projects Nvidia could reach a market capitalization of (6 trillion, reflecting unwavering confidence in the persistence of the bullish cycle. However, Gil Luria of DA Davidson offers a more reserved counterpoint.

Luria argues that Nvidia’s recent spectacular performance is based on insatiable demand for AI-specialized GPUs but questions whether this trajectory can continue when the data center market begins its maturation phase. According to his analysis, Nvidia’s current stock price already incorporates a scenario where the data center computing market is approaching its limit.

Luria’s observed transition is significant: Jensen Huang is already shifting strategies toward less explored territories—the integration of GPUs in automotive and robotic systems—but the timing of these expansions remains an unknown.

Competitive Pressure Intensifies in AI Hardware

Competition is not standing still. One day after Jensen Huang unveiled his innovations, Lisa Su, AMD (AMD) CEO, surprised the market with the concept of “yottaflop”—a computational measurement unit that until now seemed purely theoretical.

Although Nvidia maintains an undisputed leadership position in AI solutions, Ives suggests Wall Street is underestimating AMD’s emerging role. “AMD is destined to be a key player in the next phase of AI transformation,” Ives comments, indicating that the market has yet to adjust AMD’s valuations accordingly.

Infrastructure Builders: Hidden Protagonists but Vulnerable

Luria identifies a less obvious but potentially more decisive dynamic: companies building the underlying infrastructure could be more relevant than the tech giants themselves. His analysis of CoreWeave (CRWV) is particularly revealing—he upgraded its rating but with significant reservations.

Luria describes CoreWeave and Oracle (ORCL) as secondary actors whose debt leverage strategies to expand capacity seem speculative. He argues this dynamic could erode value for shareholders in scenarios of market cooling.

External Catalyst or Imminent Correction?

Luria points to a potential trigger that transcends the three giants. Rumors about OpenAI’s plans to raise $100 billion—with an estimated valuation between $750 billion and $830 billion by the end of March—could accelerate massive-scale AI infrastructure investment.

However, there is a critical nuance: if OpenAI fails to close this funding or if the capital environment becomes more restrictive, the demand forecasted for Nvidia’s new Vera Rubin chips could fall far below current market expectations. In that scenario, Jensen Huang and the industry would face a significant reset of valuations.

The implicit conclusion is that Nvidia’s future depends not only on its technological innovation but also on macroeconomic dynamics and investment decisions beyond its direct control.