Nvidia (NASDAQ:NVDA)
Even though Nvidia (NASDAQ:NVDA) provided a mediocre third-quarter forecast and research firm Baird described the stock as “steering-less” with no possibility of a big rebound anytime soon, shares of the business gained on Thursday.
Even while Nvidia (NVDA) is striving to correct its inventory picture, analyst Tristan Gerra warned that even with new product launches, it’s probable there would be “at least a couple of quarters” of this happening. And with the stock trading at its current level, it’s sufficient to keep the company on hold. Gerra stated in a note to clients that “we envision a steering-less stock for the rest of this year as [year-over-year comparisons] continue to decelerate, with no V-shape rebound in sight.”
In late-day trading, Nvidia (NVDA) shares increased by more than 2.5% to $176.72.
Additionally, Gerra identified the “appearance of inventory deleveraging in the data center” and Nvidia’s (NVDA) claim that it would continue to “substantially” under-ship consumer GPUs as two important items to watch.
The analyst also identified the projected fork in Ethereum that is scheduled to occur next month, poorer gross margins as a result of a future mix of lower-end GPUs, and the beginning of the lower-margin auto industry as potential grounds of disagreement for investors.
Separately on Thursday, a number of analysts pointed out that the September GTC conference and a number of impending product launches are among the stock catalysts for Nvidia (NVDA).
Gearing Up for Late Year Product Release
It’s possible that Nvidia will ship its RTX 4000 graphics cards later than normal. Nvidia CEO Jensen Huang stated the business is still working to get rid of existing GPU inventory at retailers during a Wednesday results call.
After that, Huang made an intriguing comment in his concluding remarks: “In gaming, our partners and ecosystem are responding to an unexpected dip in consumer demand and adjusting channel inventories.” “However, gaming’s foundations are solid. We’ll overcome this over the coming months and enter the following year with our new architecture. I’m looking forward to discussing it further with you at GTC next month.
Featured Image: Megapixl @Savconstantine
Author Jowi Kwasu 
