Nvidia's stock price fluctuated on Thursday as investors believed that the earnings report of this artificial intelligence chip manufacturer was controversial.

Nvidia's performance in the third quarter announced on Wednesday evening exceeded expectations, but the current sales guidance was only slightly higher than expected. Nvidia's stock fell in after-hours trading following the release of the third-quarter report.

In early trading on the stock market today, Nvidia's stock price fell by over 3%. Earlier in the session, the index rose nearly 5% to 152.89 points.

Most Wall Street analysts like the news from Nvidia. After the announcement of Nvidia's third quarter financial report, at least 17 analysts raised their target price for the company's stock.

Analyst Daniel Ives of Wedbush Securities stated that Nvidia consistently provides conservative guidance. Ives noted in a client report that the company often "underpromises and overdelivers".

Analyst Stacy Rasgon from Bernstein reiterated his buy rating on Nvidia's stock and raised the target price from 155 British pounds to 175 British pounds.

Rasgon stated in a client report, "Although the outlook may be slightly below some more optimistic rumors, in a situation of tight supply, the prospects seem significant enough."

He said that Nvidia's outlook seems conservative as the company has raised its sales forecast for the Blackwell chip this quarter, while demand for the Hopper chip remains strong.

Nvidia stated that its next-generation AI chip, Blackwell, has been fully put into production.

Lasgon said, "Blackwell's demand still seems to be at a high level and may exceed supply in the coming datacenter year, with the outlook for the upcoming year remaining very strong."

Nvidia's stock price fell due to concerns about gross margin.

The company's forecast of declining gross margin during the period of increasing production of Blackwell chips is a guiding issue.

Nvidia expects its gross margin to drop to "70s" early in this fiscal year, then rebound to the "70s" later this year. The gross margin for the third quarter was 74.6%.

Trust securities analyst William Stein maintains a buy rating on Nvidia's stock and raises the target price from 167 to 169.

In a report to clients, Stan stated that Nvidia's revenue guidance for the fourth quarter is "just 'good', not 'great'."

Melius Research analyst Ben Reitzes maintains a buy rating on Nvidia stock with a target price of $195.

He said that in a situation of tight supply, Nvidia will not sell Blackwell chips to other chip manufacturers.

Reitzes said in a client report, "If the client only needs to insert competitive chips, software can have the same effect--then limiting factors become more important, but when you basically invent the whole field, it's different."

He added, "No channel checks indicate a lack of interest in the new Blackwell systems."

JPMorgan analyst Harlan Sur agrees with this.

Sur stated in a client report that Nvidia "continues to maintain a competitive advantage of 1-2 steps ahead of competitors with its silicon/hardware/software platform and strong ecosystem." He rates Nvidia's stock as shareholding, raising the target stock price from $155 to $170.

Other AI-related stocks will benefit.

During a conference call with analysts, Nvidia's Chief Financial Officer Colette Kress said, "The demand for Blackwell is staggering, and we are rushing to expand supply to meet the incredible demand from our customers."

Evercore ISI analyst Amit Daryanani stated in a report that NVIDIA's third-quarter earnings report provided a positive outlook for other stocks related to AI datacenters.

He listed companies such as AMD, Arista Networks, Dell Technologies, HP Enterprise, and VMware.