Nvidia Stock Rebounds 7% on Analysts Highlight Shares of Nvidia (NVDA) saw a rebound in early trading on Tuesday, following a sharp decline on Monday caused by reports of a delay in the release of its Blackwell artificial intelligence (AI) chip. The stock had tumbled more than 6% amid a broader global stock market rout. Despite the initial panic, analysts remain optimistic about Nvidia's long-term prospects and its leadership in the AI space.
Key Takeaways
- Rebound After Decline: Nvidia shares rebounded after a spokesperson clarified that the production of the Blackwell AI chip is still on track to ramp up in the second half of the year.
- AI Leadership: Bullish analysts believe Nvidia's strong position in the AI market will mitigate any short-term volatility caused by the reported delay.
- Analysts' Perspective: Analysts from major financial institutions, including Oppenheimer, Goldman Sachs, and Bank of America, maintain a positive outlook on Nvidia's long-term performance despite potential short-term setbacks.
Nvidia's Response to Delay Rumors
Nvidia addressed the concerns head-on, with a spokesperson stating, "Blackwell sampling has started, and production is on track to ramp in the second half of the year. Beyond that, we don't comment on rumors.” This statement aimed to reassure investors that the company is on schedule, despite the swirling rumors.
Analysts Remain Bullish
Oppenheimer analysts emphasized Nvidia's robust competitive position in the AI market, asserting that a minor delay would not lead to a loss of market share. They highlighted Nvidia's comprehensive AI hardware and software solutions as a key strength.
Goldman Sachs analysts acknowledged the possibility of near-term volatility but downplayed its impact on Nvidia's earnings for the 2025 calendar year. They stressed that Nvidia's long-term competitive position remains intact.
Citi analysts, despite removing Nvidia from their "upside catalyst watch" due to the delay reports, continued to hold a "buy" rating for the stock. They maintained confidence in Nvidia's ongoing performance.
Bank of America analysts viewed potential supply constraints as a "solvable" issue, suggesting that any resultant sell-off would be an "enhanced buying opportunity." Their long-term bullish stance on Nvidia remains unchanged.
Market Performance
As of the time of writing, Nvidia shares (NASDAQ: NASDAQ:NVDA ) had risen by 7%, reaching $106.48. Despite recent market turbulence, Nvidia's stock has more than doubled in value since the beginning of the year, showcasing its resilience and the strong confidence investors have in the company's future.
Conclusion
While the reported delay in Nvidia's Blackwell AI chip initially spooked the market, the company's clarification and the continued confidence of analysts highlight Nvidia's solid position in the AI industry. The consensus among analysts is that Nvidia's long-term prospects remain strong, bolstered by its leadership in AI technology. Investors seem to agree, as evidenced by the stock's quick rebound.
