On Tuesday, Rosenblatt Securities maintained its Buy rating and $200.00 price target on NVIDIA Corporation (NASDAQ:NVDA) stock, despite circulating rumors about potential delays in the company's upcoming Blackwell B200 GPUs. The firm addressed concerns regarding an undisclosed silicon flaw that is speculated to push the release of the B200 from late 2024 to early 2025.
The analyst from Rosenblatt disputed the rumors, stating that there has been no confirmation of design flaws or timing issues with any of the Blackwell GPU series, including the B100, B200, or GB200.
The anticipated release dates for these products are set for the fourth quarter of 2024 for the B100, the first quarter of 2025 for the B200, and the second quarter of 2025 for the GB200.
The firm clarified that the B200 model is a distinct platform, offering higher performance compared to the B100, which shares infrastructure with the current H100/200 GPUs. The speculation about the B200's delay has been a point of concern for investors and the market.
In their statement, Rosenblatt emphasized that their current financial model for NVIDIA had already accounted for an early 2025 release of the B200, aligning with the speculated delay.
The firm expressed confidence in its assumptions regarding the Blackwell GPUs and the timing of various product ramps. They assured that the current sampling of parts is proceeding without any reported issues or delays.
The reassurance from Rosenblatt comes at a crucial time for NVIDIA, as the company navigates market expectations and prepares for the launch of its next-generation GPUs. The firm's stance suggests a stable outlook for NVIDIA's product roadmap and its stock performance in the near future.
InvestingPro Insights
As NVIDIA Corporation (NASDAQ:NVDA) gears up for the anticipated release of its Blackwell GPU series, despite concerns about potential delays, it's beneficial to consider the company's financial health and market performance. According to InvestingPro, NVIDIA boasts a perfect Piotroski Score of 9, indicating a strong financial position. This score is a testament to the company's operational efficiency and could be a reassuring factor for investors worried about the impact of potential product delays.
InvestingPro data reveals that NVIDIA has experienced significant revenue growth over the last twelve months as of Q1 2023, with a 208.27% increase, highlighting the company's rapid expansion in the market. Moreover, the company's gross profit margin stands at an impressive 75.29%, showcasing its ability to maintain profitability despite the costs associated with developing cutting-edge technology such as the Blackwell GPUs. With a market capitalization of $2470.0B USD, NVIDIA's size and financial clout remain formidable in the semiconductor industry.
For investors seeking deeper insights, InvestingPro offers additional tips, including an analysis of NVIDIA's sales growth projections for the current year and its position as a prominent player in the Semiconductors & Semiconductor Equipment industry. These factors, along with the company's moderate level of debt and the ability to cover interest payments with cash flows, provide a nuanced view of its financial standing. To explore more about NVIDIA's market performance and valuation, interested readers can find further analysis on InvestingPro, which includes a total of 20 InvestingPro Tips for a comprehensive investment strategy.
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