After two weak trading days, NVIDIA investors regained courage in the middle of the week.
• China investigations weigh on NVIDIA
• New Blackwell chip generation is scheduled to be ramped up from 2024
• Analysts are optimistic
The news that Chinese antitrust authorities have targeted the US company NVIDIA for possible antimonopoly violations has hurt NVIDIA shares this week. On Monday, the share price on the NASDAQ fell by 2.55 percent, followed by a further drop of 2.69 percent on Tuesday. But in Wednesday’s pre-market trading, the situation for investors became friendlier again: NVIDIA shares temporarily gained 0.82 percent to 133.57 US dollars.
China worries less big than expected?
This should also be helped by the fact that the Chinese market, where accusations of monopoly are being made, promises manageable business for the AI giant. There are already extensive trade restrictions for chip manufacturers, so the existing restrictions on exports have already left the Americans’ business in the region within a manageable range. Although the situation could worsen again when Donald Trump assumes the presidency in January, there appears to be little reason to worry until then: “The technology restrictions between the USA and China have tightened under the Biden administration, so it will be interesting “If Trump 2.0 changes these technology restrictions between the US and China, in the meantime, NVIDIA is a great buy in the short term,” quotes “Barron’s” Louis Navellier, founder of Navellier & Associates.
Blackwell production analyst optimistic
In addition, the AI giant’s weal and woe are likely to depend on how quickly production of the new Blackwell chip generation can be ramped up. The demand for the new generation of AI chips is enormous – so high that NVIDIA needs to expand production as quickly as possible to serve all interested customers. Susquehanna analyst Christopher Rolland sees no problems in this regard: “The analysis of supply chains in Asia is constructive… it points to an initial ramp-up phase for Blackwell in the fourth quarter of 2024 [im vierten Quartal 2024] and volume production in Q1 2025 [im ersten Quartal 2025] “Barron’s” quotes from a customer note from the expert.
Rolland was correspondingly optimistic about the price prospects for NVIDIA shares: He gave the share a price target of $180, which is slightly below the average price target on Wall Street, which is given on TipRanks at $184.47 . Rolland believes that the share price will jump by 32 percent based on the current price level – the majority of analysts even believe an increase of 37 percent is possible.
Editorial team finanzen.net
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