Stock market: after a historic fall, Nvidia is back in GeForce

© Nvidia

Nvidia is getting back on track. After suffering a dizzying fall on Wall Street in recent weeks, the chip giant saw its share price climb by 6% on Tuesday.

A Blackwell processor delay less than expected

Investors are reassured. Because in just two months, 900 billion dollars have been wiped off the Nvidia capitalization. A dramatic drop that can be explained by several factors. First, the potential implementation of additional measures to restrict sales of advanced chip manufacturing equipment to China. Since 2022, the Biden administration has been trying to prevent the Middle Kingdom from accessing these technologies, which is affecting Nvidia’s activities in the country.

Donald Trump’s comments on Taiwan, suggesting that the country should pay the United States to ensure its defense, also affected the company’s share price. As a reminder, Nvidia is working with TSMC, a Taiwanese semiconductor giant, to develop its artificial intelligence (AI) chips. In addition, the significant spending on AI by its major customers, such as Google and Microsoft, has led to a sense of skepticism among their investors.

Finally, rumors of design flaws and production delays for Nvidia's new Blackwell chip series have been added to this list. Because billions of dollars are at stake. And it is precisely information on this last point that has partly allowed the company's shares to start rising again.

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Analysts at UBS bank have in fact established that deliveries of Blackwell chips would ultimately be delayed “by 4 to 6 weeks at most “, instead of the 3 months initially announced. Demand remains strong and will probably be met by the H200 processor during this shorter period, experts assure.

© Unsplash/Tech Daily

Nvidia praised by investment giants

At the same time, Scott Rubner, a strategist at investment bank Goldman Sachs, praised Nvidia, calling its stock the “most important” of the year. The manufacturer will publish its quarterly results on August 28, which could also initiate a significant recovery for its market capitalization, the analyst estimates.

Its stock has increased by 24,000% over the past decade. This type of fluctuation is therefore not surprising, especially since its rise has accelerated exponentially since the rise of generative AI with ChatGPT.

Nvidia is now among the three most valuable companies in the world, alongside Microsoft and Apple. Just that.

• Nvidia sees its share price rise by 6% after a two-month drop
• This increase is explained by a new report ensuring that the delay of the Blackwell processor would be less significant than expected
• Nvidia will publish its quarterly results soon, which should serve as a strong signal for the months to come

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