Nvidia faces investor scrutiny over Blackwell chip delays, big earnings expected: report

Nvidia Corp (NASDAQ:NVDA) nervous investors await an update on Blackwell’s chip release before Goldman Sachs Group Inc (NYSE:GS) in San Francisco, where Nvidia chief Jensen Huang will speak with Goldman chief David Solomon, Bloomberg reports.

The stock has taken a 15% hit since it released its quarterly print and revealed that the launch of the Blackwell chip remains plagued by engineering issues.

CEO Jensen Huang’s reassurances also failed to contain the crisis. However, Nvidia expects “several billion dollars” in revenue from Blackwell in its fiscal fourth quarter.

Bloomberg reports that Zacks Investment Management client portfolio manager Brian Mulberry and Bank of America analysts flagged the delay as a strong concern in the absence of other positive catalysts for the stock. Mulberry expects Blackwell’s timely execution to limit stock volatility.

May Capital Management portfolio manager Chris Grisanti, in in a CNBC interview, dismissed a sell-off backed by the ambitious AI ambitions of cash-rich Big Tech giants such as Microsoft Body (NASDAQ:MSFT) and Amazon.Com Inc (NASDAQ:AMZN) Amazon Web Services.

Meanwhile, Nvidia’s key supplier, Taiwan Semiconductor Manufacturing Co (NYSE:TSM), surged 33% in August 2024, signaling optimism about a recovering smartphone market and continued demand for Nvidia’s artificial intelligence chips.

Despite the sale, Nvidia stock is up more than 137% over the past 12 months. Investors can gain exposure to stocks through iShares Russell 1000 Growth ETF (NYSE:IWF) and iShares S&P 500 Growth ETF (NYSE:IVW).

Price action: Shares of NVDA traded down 0.37% at $106.08 as of last check on Tuesday.

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