Nvidia Corporation (NASDAQ:NVDA), a leader in GPUs for AI, gaming, data centers, and autonomous vehicles, is reportedly facing delays in its new gaming GPU lineup. These GPUs were scheduled for release in 2026, but memory supply shortages—driven by high demand for AI accelerators—have pushed the timeline back. If the new gaming GPUs fail to launch this year, it would be the first time in three decades that Nvidia has missed a planned gaming release.

The company has prioritized memory supply for AI chips, leading to reduced production of gaming GPUs. Geopolitical and regulatory factors are also complicating Nvidia’s operations. The company’s H200 AI chip sales in China have stalled for nearly two months, awaiting a U.S. national security review. Pending approval, Chinese customers remain cautious about placing orders.

Additionally, Nvidia’s $100 billion investment plan to train and operate OpenAI’s latest AI models has stalled. Current discussions involve a smaller equity investment, signaling that the company is adjusting its AI partnership strategy.

About Nvidia Stock

Nvidia dominates accelerated computing, powering applications from gaming to AI infrastructure. NVDA stock has gained 47% over the past 52 weeks, compared to the S&P 500 Index ($SPX) increase of 16%. Year-to-date, NVDA is up just 2%, reflecting AI market uncertainties. Shares reached a 52-week high of $212.19 in October but are now roughly 10% below that level.

On a forward-adjusted basis, NVDA trades at a price-to-earnings (P/E) ratio of 44x, higher than the semiconductor industry average, reflecting both strong growth expectations and premium valuation.

Nvidia Continues Strong Financial Performance

Nvidia reported robust third-quarter fiscal 2026 results. Quarterly revenue increased 62% year-over-year to $57.01 billion, exceeding analyst expectations of $54.74 billion. The company’s data center segment—dominated by Blackwell infrastructure sales—generated $51.2 billion, up 66% YOY. Gaming revenue grew 30% YOY to $4.3 billion.

CEO Jensen Huang highlighted record cloud GPU demand, with infrastructure sales “off the charts.” Non-GAAP EPS grew 60% to $1.30, beating the $1.24 analysts’ estimate. Nvidia has returned capital to shareholders via dividends and share buybacks, reflecting strong cash flow.

Analysts project continued growth, with Q4 fiscal 2026 EPS expected to rise 70% YOY to $1.45. Full-year fiscal 2026 EPS is projected to increase 51% to $4.43, with fiscal 2027 growth forecast at 59% to $7.03.

Analyst Views on NVDA Stock

Despite gaming GPU delays, Wall Street remains highly optimistic. Jefferies recently raised its NVDA price target from $250 to $275, maintaining a “Buy” rating. RBC Capital initiated coverage with an “Outperform” rating and a target of $240, citing strong AI demand and a $500 billion backlog.

NVDA enjoys a consensus “Strong Buy” rating, with 44 of 50 analysts recommending it. Three analysts suggest “Moderate Buy,” two rate it “Hold,” and one gives a “Strong Sell.” The consensus price target is $255.34, implying 34% potential upside, while the high-end target of $352 suggests 84% upside.

Does the Bull Case Weaken?

Short-term challenges such as gaming GPU delays, memory shortages, and regulatory uncertainty could temporarily affect investor sentiment. However, Nvidia’s AI and data center growth, robust revenue performance, and record backlog provide strong fundamental support.

For investors with a long-term horizon, these operational hurdles are unlikely to derail Nvidia’s growth trajectory. NVDA stock continues to offer significant upside potential, supported by AI adoption, cloud GPU demand, and favorable analyst sentiment.

While caution is warranted for short-term traders, the bull case for Nvidia remains intact for investors focused on secular growth in AI and accelerated computing.