Nvidia and Advanced Micro Devices (AMD) stocks have seen a selloff recently, but analysts from Piper Sandler believe this presents a “tremendous opportunity” for investors. They expect both chipmakers to benefit from the surging demand for artificial intelligence (AI) chips. The analysts stated that they see no “meaningful” impact from a reported delay in Nvidia’s Blackwell AI chip.
Nvidia recently indicated that production is “on track” to ramp up in the second half of the year. “Beyond that, we don’t comment on rumors,” a Nvidia spokesperson said. Piper Sandler analysts interpreted Nvidia’s statements to suggest that the company does not anticipate any meaningful delays in the timing of its Blackwell chip.
However, they noted that if there is a delay, it could have a significant financial impact—approximately $1 billion for the October quarter and between $2 billion and $3 billion for the January quarter.
Nvidia reassures investors on chip delays
Nvidia may offer more details about the potential delays during its earnings report scheduled for Aug.
28. The analysts also highlighted AMD as a “top pick” for AI investors. They pointed to AMD’s product leadership and its potential to gain market share, especially if there are delays with Nvidia’s Blackwell chip.
The analysts believe AMD could increase its share of the accelerator market in the coming years as it gains on competitors. Shares of Nvidia fell 5.1% to $98.95 on Wednesday, while AMD shares dropped 1.2% to $128.67. Despite Wednesday’s losses, Nvidia shares have nearly doubled in value since the start of the year, while AMD shares are down close to 13% over the same period.
Overall, Piper Sandler analysts suggest that the recent downturn in these chip stocks presents a significant buying opportunity for long-term investors.
