Is Nvidia (NVDA) Blackwell Delay A Concern For Its Earnings?

We have been seeing rallies becoming overheated, the sector has been hit by concerns over the Fed interest rate cuts decision and also China’s weak economy.

Note that SMCI stock price have dropped 36% over the past six months after hitting an all-time high of $1,088 in mid-March. Despite the recent plunge, the stock is still up 112% year to date.

From the multi-timeframe, SMCI looks like we can expect some downward trend despite Nvidia earnings turned out strong.

We have seen Nvidia with a $3.1 trillion market cap beat the bottom line in six previous quarter earnings, but the news headlines coming out during the weekend of 03 August showed that there were reports of delay in the Nvidia’s next -generation AI chips.

Blackwell semiconductors were originally expected to be available this coming January, but concerns rose that they might not be ready until the following spring. But we are also seeing that the demand for its current chips was reportedly strong.

Nvidia stock price has dropped from 10 July high above $135 to near $90 on 05 August. We have been seeing Nvidia trying to make a comeback on its stock price to above $130,but failed to cleat $131.

If we looked at the multi-time frame, I would think that NVDA could provide us a surprise for its earnings. I am expecting NVDA to jump at least 5% post earnings.

Powell’s speech reaffirmed expectations for the start of Fed easing. With the minutes from the July FOMC gathering already out in the open, the bond market largely anticipated Powell’s tone and broad guidance. Equities, particularly small caps, rallied, nevertheless. While much could depend on how PCE inflation verifies later this week and what the August employment report reveals, attention can be turned back to company-specific news this week such as NVIDIA (NVDA).

Appreciate if you could share your thoughts in the comment section whether you think we should look beyond NVDA latest chip delay and look at the strong demand for its current chips.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.