Nvidia (NVDA) CEO Jensen Huang recently discussed Nvidia’s prospects, predicting that Blackwell chip sales will be higher than expected. The AI leader reported Q3 earnings yesterday, revealing growth in several key metrics, including a 94% year-over-year sales increase and a new quarterly revenue record of $35.1 billion. While shares are slipping today, they are likely to rebound in the near future, particularly if Huang’s Blackwell chip predictions are correct.
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Why Is Nvidia Stock Down Today?
While Nvidia’s strong Q3 earnings report demonstrated strong overall growth, there are reasons for investors to be cautious. As TipRanks’ Sheryl Sheth notes, the company could face supply problems regarding the Blackwell AI chip. These concerns are likely what is pushing NVDA stock down today, combined with general market volatility. However, shares are down less than 1% for the day so far and could easily rebound. The stock has performed well during the past five-day period.
Even if Nvidia does encounter some supply problems, Huang doesn’t seem concerned. He notes that Blackwell chip production is “in full steam,” predicting that the company will deliver more chips than it had previously estimated during Q4. This could set Nvidia up for an extremely strong start to 2025, as high chip deliveries would likely be a strong catalyst for share prices.
The fact that NVDA stock is only down 1% today and is already on track to pull back into the green shows that the market isn’t too concerned with Nvidia’s potential problems. It suggests that the robust growth that the company has demonstrated is more important than speculative concerns that so far have not materialized. Despite the recent concerns about Blackwell chips overheating in servers, Nvidia is moving forward and share prices are likely to keep rising as a result.
Wall Street Remains Highly Bullish on NVDA Stock
Wall Street sentiment toward Nvidia hasn’t been negatively impacted so far. Analysts have a Strong Buy consensus rating on NVDA stock based on 39 Buys and three Holds assigned in the past three months, as indicated by the graphic below. After a 198% rally in its share price over the past year, the average NVDA price target of $165.18 per share implies an upside potential of 16%.
See more NVDA stock analyst ratings
Since Nvidia reported Q3 earnings, multiple analysts have raised their price targets. Jim Kelleher of Argus Research increased his from $150 to $175 and Mark Lipacis of Evercore ISI increased his from $189 to $190. Both analysts reiterated Buy ratings.
