Key Bank Analysts Remain Positive on Nvidia's Prospects

Key Bank Capital Markets analyst John Vin reassured investors that the delay in Nvidia's Blackwell chips will not adversely affect the company’s near-term financial results. The anticipation grew as Nvidia prepares to announce its quarterly earnings next week. Vin noted that although the Blackwell chip launch is postponed, it was not expected to have significant contributions for the upcoming quarters. Instead, Nvidia's existing Hopper GPUs maintain strong demand, with backlogs quickly filling any gaps left by Blackwell. This indicates that Nvidia is well-positioned with its current offerings. Additionally, Vin mentioned that supply constraints that previously affected Hopper GPUs have begun to ease, with more advanced packaging capacity coming online. This sets a favorable context as Nvidia heads into its earning announcement, as expectations are for continued sequential growth driven by strong demand. Questions remain about the future ramp-up of the Blackwell chips once they are available, particularly in the enterprise sector. It's clear that while challenges exist, negotiations are shifting to newer products that could attract substantial market interest, especially among hyperscale customers. As Nvidia continues to strategize for market service, it demonstrates resilience in maximizing existing product performance.