Investors Press Nvidia as Blackwell Chip Timeline Slips
Nvidia Corp (NASDAQ: NVDA) investors are on edge, waiting for concrete updates on the rollout of the company’s Blackwell chip. Expectations are high ahead of an upcoming conference where CEO Jensen Huang is set to address investors, who want clarity on timing, the engineering work still underway, and what all of it means for revenue in the near term.
Market Reaction to Chip Delays
After the latest quarterly report flagged ongoing engineering challenges that are affecting the Blackwell launch schedule, NVDA fell about 15%. The pullback sharpened scrutiny from analysts and long-term holders alike. They’re looking for a credible path to launch—and a reason for the stock to trade with less whiplash.
Future Revenue Expectations
Setbacks aside, Nvidia still expects the Blackwell platform to contribute several billion dollars in revenue in the fiscal fourth quarter. If execution lines up with that target, it could steady sentiment and help the shares regain footing. If not, the uncertainty likely lingers a bit longer.
Analysts Weigh In
Brian Mulberry of Zacks Investment Management has voiced concern about the delay, especially in a market with few obvious positive catalysts. Across the analyst community, the refrain is similar: getting Blackwell out on time is important to cooling volatility in NVDA and anchoring expectations.
AI Market Impact
Others remain constructive. Chris Grisanti of Mai Capital Management points to the scale of artificial intelligence plans at Microsoft Corp (NASDAQ: MSFT) and Amazon.Com Inc (NASDAQ: AMZN). Those ambitions can support Nvidia’s position in the market—even as Blackwell works through its engineering list—by sustaining demand for the company’s AI-focused platforms.
Positive Trends in Supply Chain
There are brighter signs in the supply chain. Taiwan Semiconductor Manufacturing Co (NYSE: TSM), a key Nvidia supplier, reported 33% revenue growth in August 2024. That pace underscores the ongoing surge in demand for AI chips and hints—cautiously—at a healthier backdrop as Nvidia approaches the next phase of its product cycle.
Long-term Growth Potential
Despite the recent selloff, NVDA is still up more than 137% over the past year. For investors who want exposure without picking individual names, options include broad growth funds such as iShares Russell 1000 Growth ETF (NYSE: IWF) and iShares S&P 500 Growth ETF (NYSE: IVW). These vehicles can provide Nvidia exposure within a diversified basket.
Price Action Snapshot
At last check, NVDA edged lower to $106.08. The move reflects a wait-and-see stance as the market gauges how and when Nvidia resolves the remaining Blackwell issues.
Frequently Asked Questions
Why is the Blackwell delay drawing so much attention?
Because it affects timing, near-term revenue, and confidence. Nvidia acknowledged engineering challenges that pushed the schedule, and with Jensen Huang due to speak at an upcoming conference, investors want a clear path to launch.
How much revenue does Nvidia expect from Blackwell?
Nvidia still projects several billion dollars in revenue tied to Blackwell in its fiscal fourth quarter, assuming the company executes the rollout as planned.
How has the delay affected NVDA shares?
Following the quarterly report that highlighted engineering issues, the stock fell about 15%. That decline intensified scrutiny from analysts and investors.
Are there any offsetting positives in the backdrop?
Yes. Taiwan Semiconductor Manufacturing Co reported 33% revenue growth in August 2024, a sign of strong demand across the AI supply chain, which could help once Blackwell ships.
What are straightforward ways to get Nvidia exposure?
Beyond owning NVDA directly, investors can consider diversified growth funds such as iShares Russell 1000 Growth ETF (NYSE: IWF) and iShares S&P 500 Growth ETF (NYSE: IVW), which include Nvidia among broader holdings.
