Nvidia shares ticked modestly higher following Taiwan Semiconductor Manufacturing Co.’s (TSMC) better-than-expected quarterly results, underscoring robust global demand for advanced AI accelerators. TSMC reported a 22% year-over-year revenue increase for its fourth quarter, driven largely by orders for Nvidia’s latest H100 chips. Industry surveys indicate that hyperscale data center operators have already booked more than 80% of Nvidia’s planned H200 production for the first half of the year, reflecting confidence in continued deployment of large language models and generative AI platforms. This pull-through effect from TSMC reinforces Nvidia’s leading position, as its data center business grew over 280% in the most recent quarter and now represents nearly 70% of total company revenue.

Nvidia’s announcement of an in-house robotaxi initiative signals its ambition to integrate its GPU, software and AI stack directly into autonomous vehicles by late next year. The company plans to pilot a fleet of “Level 4” vehicles in partnership with leading automotive OEMs, leveraging its new “Blackwell Ultra” architecture and a custom fleet management platform. Analysts estimate Nvidia’s automotive segment could reach $10 billion in annual revenue by 2028 if even 5% of ride-hailing services adopt its turnkey solution. Tesla shareholders should take note: Nvidia’s entry brings deep AI expertise and an already-scaled chip ecosystem, potentially eroding early market share if gigafactories and safety validations proceed on schedule.

On January 16, Jefferies analyst Blayne Curtis lifted his 12-month price target on Nvidia from $250 to $275 and maintained a Buy rating, citing confidence in the company’s strategic roadmap unveiled at CES. Curtis highlighted Nvidia’s 65.2% revenue growth over the trailing twelve months to $187.1 billion and forecast continuous upward estimate revisions through 2028. He also noted that, despite intensifying competition, Nvidia’s GPUs remain the de facto standard for AI workloads and that gross profit margins above 70% provide room for further investment in R&D. Jefferies’ target implies roughly 40% upside from current levels, aligning with consensus upside expectations among a majority of Wall Street analysts.