Nvidia Stock Falls Ahead Of GTC. Here's Why.
Nvidia (NVDA) stock dipped Monday ahead of the company's GTC conference. One analyst said the stock might not see a sustained rally until after the chipmaker's earnings report in May.
Mizuho Securities trading-desk analyst Jordan Klein said investors are focused on a host of headwinds facing Nvidia.
↑ X Trump Tariffs Are Roiling The Stock Market. Here's How Things Could Play Out."Many do not believe or expect GTC to overshadow all the uncertainties and worries regarding weakening macro, tariff uncertainties, China restrictions that could take down Nvidia's revenues, weaker gross margins near term, and pace of the new product ramp given supply chain challenges," Klein said in a client note.
At GTC, Nvidia is likely to talk up strong demand for its graphics processing units for artificial intelligence, he said. It will highlight the performance and efficiency improvements with its upcoming Blackwell Ultra and Rubin chips, Klein said.
"Personally, I still like Nvidia but see (the) stock as range-bound until maybe the May earnings results," Klein said. Catalysts for Nvidia stock would include a stronger July-quarter outlook and more clarity on a rebound in gross profit margins, he said.
On the stock market today, Nvidia stock slumped 1.8% to close at 119.53.
Nvidia Chief Executive Jensen Huang will kick off the company's GTC conference in San Jose, Calif., on Tuesday with a keynote speech at 10 a.m. Pacific time. He plans to discuss what's next in agentic AI, robotics, accelerated computing and more, the company said.
Nvidia Stock Concerns
Investors will focus on GTC news related to shipping dates for Nvidia's latest AI processors, JPMorgan analyst Samik Chatterjee said in a client note.
The ramp of Blackwell Ultra is likely on track for second-half 2025, he said. But Chatterjee anticipates investor skepticism about the launch timing for Rubin chips. Rubin is due out in 2026.
"Although investors will continue to look for updates on the Rubin platform into 2026 given delays experienced during the transition from Hopper to Blackwell, we view the reiteration of the Blackwell Ultra ramp timing and more details in relation to Rubin as likely to be taken as a positive for the Nvidia supply chain," Chatterjee said.
UBS analyst Timothy Arcuri on Monday reiterated his buy rating on Nvidia stock with a 12-month price target of 185.
Investor uncertainty around export controls remains high, Arcuri said in a client note. The biggest debates on the stock are whether the U.S. government will impose additional export controls that encompass Nvidia H20 shipments to China and what impact the pending AI diffusion rules will have.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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