Nvidia Blackwell Chip Could Squeeze Profit Margins, Analysts Warn
Nvidia stock was up 1.2% ahead of Thursday’s opening bell–solid enough gains, but not the sort of eye-popping returns investors have come to expect from the chip maker even though it posted another solid earnings report.
One slight worry for the market is that Nvidia’s gross margin guidance of 71% for the current quarter came in below expectations. That’s because the company is “expediting manufacturing for initial Blackwell ramp,” KeyBanc analyst John Vinh said in a research note.
He’s otherwise still bullish on the stock, which he rates Overweight with a price target of $190, implying it can jump 45% from its current level.