A positive industry update from Trendforce on the production of its Blackwell NVL/GB200 system sent Nvidia (NVDA, Financial) up 4% on Wednesday. Nvidia shares went below $130 per share Tuesday for the first time since October, after which the surge was set in motion.
Despite earlier rumors of cooling and heat control delays, Trendforce said the production of Nvidia’s Blackwell NVL/GB200 system was on track. It projects mass production will peak in the second or third quarter of 2025, providing a more precise timeline for an investor watching for Nvidia’s next generation of advances.
The update calms concerns about production setbacks and helps market participants respond positively. Mizuho TMT specialist Jordan Klein says Nvidia’s revenue guidance for the January quarter, guided below buy-side estimates of $3940 billion, might have already factored in these production challenges. Klein also added that this strategic move could help Nvidia beat expectations if production proceeds as projected.
The optimistic production timeline and Nvidia’s blunt guidance on production challenges indicate stamina in the face of supply chain and development pressures. Meanwhile, Nvidia is in the spotlight as analysts and investors watch to see how the company navigates its key role in the semiconductor and AI hardware sectors, where its Blackwell line is expected to further cement its leadership.
A bounce out of this territory offers some relief for Nvidia shares, which have dropped sharply for weeks, a sentiment that the company’s future growth prospects won’t wane.
This article first appeared on GuruFocus.
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