BING-JHEN HONG
Nvidia (NASDAQ:NVDA) was in focus on Monday as U.S. technology stocks sank for a variety of reasons, including a report that the chip giant has delayed the release of its new Blackwell line of graphics processing units to its customers. As such, Citi lowered its sales estimates for the 2025 fiscal year.
Nvidia shares fell 10% in premarket trading.
Given that the demand for chip usage related to artificial intelligence has not slowed down, Citi analyst Atif Malik said customers increasing their demand for H100 and H200 could help Nvidia "partially offset" any decline related to the reported delay, which could be as long as three months.
Malik cut his fiscal 2025 revenue estimates by 5% but kept his fiscal 2026 estimates unchanged, as he believes any sales will likely just be pushed out by a quarter. Malik reiterated his Buy rating and $150 price target on Nvidia, but removed his 30-day catalyst watch on the stock.
Nvidia is likely to remain the leading company in the AI GPU space, with roughly 90% of the market. However, any delay could help AMD (AMD) become a stronger second source, Malik added.
Several other research firms weighed in on the report, including Bernstein, which said the news is "unlikely to help current AI sentiment," but that it was not yet panicking. Wells Fargo analysts said that "some of [the] delayed Blackwell volumes can be made up by H100 / H200 and a B200A sku using CoWoS-L."
Nvidia is set to report its own quarterly results later this month. A consensus of analysts expects the company will earn $0.82 per share on $28.5B in revenue.
(This story has been updated to include additional analyst commentary.)
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