nvidia's breakthrough ai chips and partnership with toyota revealed at ces 2025
Las Vegas, Wednesday, 8 January 2025.
Nvidia CEO Jensen Huang captivated audiences at CES 2025 with the announcement of the company’s latest AI chips, promising to revolutionize multiple industries. The new Blackwell AI chips stand out for their ability to process trillion-parameter large language models at significantly reduced costs and energy consumption—up to 25 times lower than previous models. This innovation aligns with Nvidia’s strategic partnership with Toyota, aiming to advance driver assistance and autonomous driving technologies. The introduction of the mini AI supercomputer, Project DIGITS, further showcases Nvidia’s commitment to pushing the boundaries of AI capabilities. These developments not only highlight Nvidia’s cutting-edge technology but also suggest a potential boost in the company’s stock performance. This CES announcement positions Nvidia at the forefront of the AI revolution, promising substantial impacts across sectors like gaming, automotive, and beyond.
Market dominance and stock performance
Nvidia’s market position remains formidable, with the company’s stock reaching $149.43 before the CES announcement [1]. The company’s remarkable growth is evidenced by its 171% stock surge in 2024, achieving a market capitalization of $3.54 trillion [5]. Bank of America has set an optimistic mid-term target price of $190 [5], reflecting strong confidence in Nvidia’s market trajectory.
Revolutionary Blackwell architecture
The new RTX 50 series, based on Blackwell architecture, features 92 billion transistors and delivers 3400 TOPS performance [2]. The flagship RTX 5090, priced at $1,999, offers unprecedented capabilities [2]. Most notably, the RTX 5070, priced at $549, matches the performance of the previous generation’s RTX 4090 [3], demonstrating significant advancement in price-performance ratio.
Toyota partnership and automotive expansion
Nvidia’s collaboration with Toyota marks a significant milestone in the automotive sector. The partnership will utilize Nvidia’s Drive AGX Orin technology for advanced driver assistance systems [1]. The company projects its automotive business to expand to $5 billion by fiscal year 2026 [6], with the new ‘Thor’ processor offering 20 times the computing power of its predecessor [6].
Project DIGITS and AI infrastructure
Project DIGITS, Nvidia’s mini AI supercomputer, achieves one petaflop computing speed and can handle models with 200 billion parameters [1][2]. The system incorporates NVLink72 technology, featuring 130 trillion transistors and 1.4 ExaFLOPS TE FP4 computing power [2]. This innovation positions Nvidia to capitalize on the growing demand for personal AI computing solutions.