The next-generation processor was unveiled six months ago but has faced engineering snags that delayed its release. While CEO Jensen Huang tried to reassure the market last month that revenue from the chip is coming soon, some investors were left wanting for details. That - along with broader macroeconomic jitters - has contributed to a 15% selloff since the earnings report.
Lingering questions about Blackwell will be a key focus when Huang speaks at a Goldman Sachs conference in San Francisco on Wednesday. He's scheduled to speak with David Solomon, Goldman's CEO, at 7.20am Pacific time (4.20pm SAST).
"Nobody likes a delay," said Brian Mulberry, client portfolio manager at Zacks Investment Management. "It's one of those blips that investors are just kind of latching onto." In the absence of other positive catalysts for the stock - and combined with broader worries hitting the whole tech sector - the Blackwell snags have added to concerns that the artificial intelligence darling has risen too far, too fast.
While Nvidia has done a good job of managing expectations, "they probably could communicate better, particularly around the Blackwell issue", Mulberry added.
They've said they'll be able to bring things up to speed by early 2025, and "if they can communicate clearly that they are still on track to do that and there won't be any further delays in production, they can quell some of these short-term fears", he said.
