Nvidia Stocks: Chipmaker Launches New Products on Iffy Market

Latest GPUs from nvidia NVDA has positive reviews, but analysts are questioning whether customers are in a buying mood. That’s the big question hanging over Nvidia stocks.


Year-to-date to Thursday’s closing date, Nvidia’s stock is down 57%. The sharp decline erased last year’s 125% gain.

At the company’s fall GTC conference on Tuesday, Nvidia introduced new GPUs. These devices for gamers and content creators are called the GeForce RTX 40 series.

The new GPUs are made by the contract manufacturer Taiwan Semiconductor (TSM) using 4 nm scale technology. They offer a big performance bump over previous models but with a higher price tag.

Nvidia will release its best model first. The GeForce RTX 4090 will be available on October 12, starting at $1,599. Two lower versions, the RTX 4080, will be released in November, with starting prices of $1,199 and $899. Nvidia raised prices for new models by 7% to 29% compared to similar products in the previous generation.

Nvidia scans inventory before new products

However, the new chips come after Nvidia took a $900 million fee in its fiscal second quarter to write off gaming processor inventory amid weak demand.

The GeForce RTX 40 series “looks poised for a strong launch” after Nvidia flushed the sales channel for its legacy graphics processors, Oppenheimer analyst Rick Schafer says in a note to customers. Moreover, it rated Nvidia stock as an outperformer with a target price of 250.

In afternoon stock market trading today, Nvidia stock fell 1.9% to 123.23.

Christopher Rowland, an analyst at Susquehanna Financial Group, is skeptical about the high prices of Nvidia’s latest gaming processors.

“We are somewhat concerned about Nvidia raising prices in the collapsing GPU market, but we see significant long-term positives from these products,” he says in a customer report. Roland reiterated his positive assessment of Nvidia stock with a price target of 190.

Nvidia’s stock is called the “Snake Bit”

Another concern for Wall Street is the state of the data center market, where Nvidia sells high-end graphics processors.

“Concern about gaming has been replaced by worry about the data center,” Morgan Stanley analyst Joseph Moore says in his note to clients. He says investors are concerned that cloud computing customers are still absorbing past purchases of data center equipment.

Moore rates the Nvidia stock as equal weight, or neutral, with a target price of 182.

At the GTC event, Nvidia announced that it had achieved full production of its H100 data center GPUs. Moreover, it plans to ship it in October.

Nvidia executives also say they believe they can reduce the impact of the US government’s recent trade restrictions with China by offering customers there alternative low-performance products.

Hans Mossmann, an analyst at Rosenblatt Securities, sees in a report that Wall Street sees Nvidia stock as a “snake piece” at the moment and remains skeptical of the company’s recent product announcements.

But Moseisman described Nvidia’s latest processors for data centers and artificial intelligence as “the biggest launches of last-generation computing in Silicon Valley.”

Mosesmann rates the Nvidia stock as a buy with a target price of 320.

Follow Patrick Seitz on Twitter at Tweet embed For more stories about consumer technologies, software and semiconductor stocks.

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