Nvidia’s stock has skyrocketed due to high demand for its top-of-the-line AI chips, but investors’ anxieties persist. The company’s highly anticipated Blackwell GPU architecture, originally slated for mass production in 4Q24, is now facing uncertainty over a reported design flaw and overheating concerns.
The delay in Blackwell’s rollout has impacted Super Micro Computer’s FY25 revenue forecast, with the AI server maker citing lack of allocation for the GB200. Analyst KC Rajkumar notes that Nvidia’s CFO stated at CES that Blackwell shipments were on track, contradicting the company’s current management uncertainty about its availability.
The discrepancy raises questions about further delays and its impact on Nvidia’s earnings. Despite a Strong Buy consensus rating from analysts, caution is warranted due to the negative read-through for the company. The average price target of $178.86 suggests 12-month returns of 32%. Investors should consider this when making informed investment decisions.
Source: https://www.tipranks.com/news/dont-ignore-smcis-negative-read-through-says-analyst-about-nvidia-stock