Nervous investors in NVIDIA Corp (NASDAQ:NVDA) are waiting for updates on the company’s Blackwell chip launch ahead of the Goldman Sachs Group Inc (NYSE:GS) conference in San Francisco, where NVIDIA CEO Jensen Huang is scheduled to meet with Goldman Sachs CEO David Solomon, Bloomberg reported.
The stock has fallen 15% since the company released its quarterly report revealing that the launch of Blackwell chips is still being marred by engineering issues.
Even assurances from CEO Jensen Huang couldn’t stave off the selloff, but Nvidia still expects “billions of dollars” in revenue from Blackwell in the fourth quarter.
Bloomberg reported that Brian Mulberry, a client portfolio manager at Zacks Investment Management, and analysts at Bank of America cited the delay as a major concern in the absence of other factors that would benefit the stock. Mulberry said he expects Blackwell’s timely execution will limit volatility in the stock.
In an interview with CNBC, Chris Grisanti, a portfolio manager at My Capital Management, sneered at the sell-off fueled by ambitious artificial intelligence ambitions of well-funded tech giants like Microsoft Corp. (NASDAQ:MSFT) and Amazon.com Inc.’s (NASDAQ:AMZN) Amazon Web Services.
Meanwhile, Taiwan Semiconductor Manufacturing Co. (NYSE:TSM), a major supplier to Nvidia, posted a 33% increase in sales in August 2024, signaling optimism about a recovery in the smartphone market and continued demand for Nvidia’s artificial intelligence chips.
Despite the selling pressure, Nvidia’s stock is up more than 137% over the past 12 months, and investors can get exposure to the stock through the iShares Russell 1000 Growth ETF (NYSE:IWF) and the iShares S&P 500 Growth ETF (NYSE:IVW).
Price Action: NVDA shares were down 0.37% at $106.08 as of last check on Tuesday.
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This article, “Nvidia Faces Investor Scrutiny Over Blackwell Chip Delays, Big Revenue Expected: Report” originally appeared on Benzinga.com.
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