Shares of Nvidia (NVDA) rose as much as 5% on Thursday after CEO Jensen Huang said demand for the next generation of Blackwell chips was “insane.”
In an interview with CNBC on Wednesday after the market close, Huang confirmed that the chips are “fully in production,” despite recent design issues that caused some delays in customer rollouts.
“Blackwell is as planned,” Huang said. “Everyone wants to have the most and everyone wants to be first.”
The delays at Blackwell have worried investors, with many seeing the rollout as the next big catalyst for the chipmaker after a recent stock slide, fueled by a sell-off in mid-July following the unwinding of the carry trade in the yen.
Since then, markets have seen a rotation out of Big Tech, while other macroeconomic factors such as Chinese trade fears have also hampered Nvidia’s share price.
But investors and analysts alike remain largely confident in the trajectory of artificial intelligence trading. Nvidia shares are still up about 170% in the past twelve months and more than 2,700% in the past five years. So far, Nvidia has gained about 150%.
90% of Wall Street analysts recommend the stock as a buy, with the majority predicting the stock will rise to around $147.60 in the next year, according to Bloomberg consensus estimates.
In addition to the latest Blackwell update, Nvidia’s move to the positive side also comes as the company backed ChatGPT developer OpenAI (MSFT) in its latest funding round, which closed on Wednesday.
OpenAI was able to raise another $6.6 billion to reach a valuation of $157 billion, another bullish sign for the AI boom.
Alexandra is a senior reporter at Yahoo Finance. Follow her on X @alliecanal8193 and email her at alexandra.canal@yahoofinance.com
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