Nvidia Stock Rebounds as Analysts Highlight AI Leadership, Despite Reported Chip Delay
Key Takeaways
- Nvidia shares rebounded in early trading Tuesday, after reports its Blackwell artificial intelligence (AI) chip will be delayed sent the stock tumbling Monday.
- An Nvidia spokesperson told Investopedia that Blackwell production is on track to ramp in the second half of the year.
- Bullish analysts acknowledged a delay could lead to near-term volatility, but remained bullish on Nvidia’s long-term prospects, highlighting its AI strength.
Nvidia (NVDA) shares rebounded in early trading Tuesday, after reports its Blackwell artificial intelligence (AI) chip will be delayed sent the stock tumbling more than 6% Monday amid a global stock market rout.
An Nvidia spokesperson told Investopedia that “Blackwell sampling has started, and production is on track to ramp” in the second half of the year, adding, “beyond that, we don’t comment on rumors.”
Bullish Analysts Highlight Nvidia’s AI Leadership
Analysts suggested that while a delay could lead to near-term volatility for Nvidia, they remained bullish on the chipmaker’s long-term prospects, highlighting its AI strength.
Nvidia’s “competitive position remains sound, and we don’t expect any share loss from a minor delay,” Oppenheimer analysts said, adding that they see Nvidia as “best positioned in AI, benefiting from full stack AI hardware/software solutions.”
A delay “could drive some volatility in Nvidia’s near-term,” Goldman Sachs analysts said, though they “expect there to be little to no impact on CY2025 earnings and, most importantly, the company’s long-term competitive position.”
Citi analysts, who had removed Nvidia from their “upside catalyst watch” over the weekend following reports of the delay, still maintained a “buy” rating for the stock.
Calling Nvidia’s potential supply constraints a “solvable” issue, Bank of America analysts suggested they would view any sell-off as an “enhanced buying opportunity.”
Shares of Nvidia were up 5% at $105.48 as of 10:45 a.m. ET Tuesday. Despite recent losses, they’ve more than doubled in value since the start of the year.
