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### Nvidia: Should Investors Focus on the Blackwell Launch Despite Mixed Guidance?
At Extreme Investor Network, we understand that navigating the investment landscape requires keen insight and an eye for opportunities. Recently, Nvidia (NVDA) has been a hot topic among investors and analysts alike. While some concerns were raised regarding the company’s recent guidance, the excitement surrounding its upcoming Blackwell graphics processing unit (GPU) rollout in January should not be overlooked. Here’s why investors might want to stay optimistic about Nvidia’s future prospects.
#### A Closer Look at Nvidia’s Performance
Nvidia’s stock price saw a modest increase of about 1.6% ahead of the bell, demonstrating resilience even as the company reported a potential slowdown in revenue growth. The tech giant’s shares have surged a remarkable 195% this year, a testament to the investor confidence underpinned by the demand for its cutting-edge AI technology.
Although Wall Street had anticipated a more explosive quarter, analysts noted that the numbers released were consistent with expectations. Jefferies analyst Blayne Curtis emphasized, “This was never the quarter that NVDA was going to blow out numbers.” His comments reflect a wider belief that Nvidia’s performance will strengthen as the Blackwell ramp-up progresses, positioning it well for potential earnings-per-share (EPS) of over $5 in the coming year.
#### Analyst Upgrades: A Positive Signal
Analysts have been raising their price targets for Nvidia, signaling renewed confidence in the company’s trajectory. Citi’s Atif Malik, for instance, has increased his target to $175, anticipating exciting updates during the upcoming Consumer Electronics Show in January. Expect commentary regarding a “robotics industrial demand inflection” that could further bolster sales projections for the Blackwell series.
Wells Fargo analyst Aaron Rakers is equally bullish, setting his sights on a $185 price target, which translates to a 27% upside from Nvidia’s previous close. He encourages investors to capitalize on any price pullbacks, given the expected shipment demand for the Blackwell chips, which could exceed several billion units next year.
Moreover, Bernstein’s Stacy Rasgon took a robust stance by increasing his target to $175, brushing aside concerns over initial margin declines as he anticipates strong demand for Nvidia’s advanced AI chips. This demand should secure Nvidia’s competitive edge against its rivals, a crucial factor in a rapidly evolving market.
#### Preparing for Future Volatility
While optimism surrounds the Blackwell launch, analysts also warn of potential near-term volatility as investors digest the current situation. Bank of America’s Vivek Arya suggests that the absence of immediate excitement might lead to a period of stock churn. Nonetheless, he remains bullish on the intrinsic value of Nvidia’s offerings.
Barclays analyst Tom O’Malley characterized Nvidia’s guidance as a “perfect thread the needle guide,” while Loop Capital’s Ananda Baruah describes the anticipated dip as a “pause before the next leg up.” This sentiment is echoed by Cantor Fitzgerald’s C.J. Muse, who believes that the months leading up to Nvidia’s GTC conference in March hold significant promise for investors.
#### The Road Ahead
In summary, while the anticipation of Nvidia’s Blackwell GPU is promising, it’s essential to remain aware of the near-term fluctuations that may occur due to market dynamics. Nvidia’s solid fundamentals and strategic advancements in technology position it well for success. As Morgan Stanley’s analyst Joseph Moore states, “Blackwell constraints are likely to be a major factor for at least a year, but we continue to see a strong Blackwell cycle as a driver for the stock for several quarters.”
At Extreme Investor Network, we’ll continue to monitor these developments closely and provide you with insights that keep you ahead of the curve. As always, staying informed and strategic in your investment decisions is key.
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