Nvidia Corp. (NVDA) used CES 2026 as a stage to show off what's coming next in AI hardware, and analysts watching CEO Jensen Huang's keynote came away with one main takeaway: the company's dominance isn't going anywhere.
Bank of America Securities analyst Vivek Arya kept his Buy rating intact with a $275 price target, while Rosenblatt analyst Kevin Cassidy maintained his own Buy rating at a $245 target. Both see plenty of runway ahead for the chipmaker.
What Nvidia Actually Announced
Huang's presentation centered on the Vera Rubin platform, which will include six new chips scheduled to arrive in the second half of 2026. The numbers Arya highlighted are pretty staggering: Nvidia is projecting 10x increases in model size, 5x improvements in token generation, and 10x reductions in token costs on an annual basis.
"AI scaling continues with 10x model size increase, 5x token generation, 10x token cost reduction per year," Arya noted in his investor update.
Beyond the new chip platform, Nvidia also rolled out a new memory storage platform and emphasized its continued strength in the large language model sector. The company is pushing AI scaling into what it calls "physical AI" applications. There's also strong demand coming from China for the H200, though those sales are currently waiting on licenses.
"We continue to highlight NVDA's continued dominance in AI compute, networking, system and ecosystem," Arya wrote, calling the company his "top AI pick" based on its sector leadership and robust product demand.
Still Early Days for AI Hardware
Cassidy's take on CES focused on a broader theme: AI development is still in its "early innings." The presentations from Nvidia, Intel Corporation (INTC), and Advanced Micro Devices (AMD) all hammered home the same message about surging global demand for computing power.
"The unifying message from NVIDIA, Intel and AMD's CES presentations was the global demand for greater computing power," Cassidy observed.
The analyst pointed out that new AI accelerators promising performance gains over previous generations are arriving just as developers are clamoring for more compute capacity. That timing matters.
"We believe that as long as breakthroughs in performance and efficiency persist, earnings growth should be able to match rising share prices," Cassidy said.
He expects AI-related investments to spread beyond data centers into new applications and industries, which would expand the addressable market considerably.
For context, Cassidy maintains a Sell rating on Intel with a $25 price target, while rating Advanced Micro Devices as a Buy with a $300 target.
Where the Stock Stands
Nvidia shares were up 0.27% to $187.57 on Tuesday, trading within a 52-week range of $86.63 to $212.19.