Nvidia (NVDA) stock slipped in pre-market trading on Wednesday after peers Super Micro Computer (SMCI) and Advanced Micro Devices (AMD) reported earnings that left investors unhappy. But Mizuho Securities’ analyst Jordan Klein remained upbeat on the stock. He called the selling pressure “the TOTAL WRONG MOVE” and said the firm still sees strong near-term potential for Nvidia.
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SMCI’s GPU Supply Comments Raise Questions About Nvidia
Klein believes Nvidia’s stock is being unfairly dragged down by SMCI’s comments about supply constraints for Nvidia’s next-gen Blackwell GPUs. During its Q4 earnings call, SMCI said it needed more Blackwell chip supply to meet strong customer demand. That raised doubts about whether Nvidia could keep up with the growing demand.
Klein responded to those concerns, saying Blackwell production is already “ramping quickly.” He also explained that Nvidia books revenue when it sells GPUs to ODM partners who build systems, not when those systems are delivered to end users. He added that SMCI itself expects supply to “accelerate materially” in the December quarter, which could ease short-term worries.
China Sales Are a Bonus, Not a Risk
Klein also weighed in on comments around AMD’s Q2 earnings and the market’s ongoing focus on China. He pushed back against investors who base their Nvidia or AMD investment case on China sales. In his view, the political situation and export restrictions make those sales unpredictable.
Instead, he believes that any return of China demand should be seen as “pure upside” and not a core reason to own the stock. For investors, that means Nvidia’s growth story remains solid even without relying on China.
Is NVDA Stock a Good Buy?
On TipRanks, NVDA stock has a Strong Buy consensus rating based on 35 Buys, three Holds, and one Sell rating. The average Nvidia price target of $186.14 implies nearly 3.75% upside potential from current levels. Year-to-date, NVDA stock has gained 33.63%.
