NVIDIA’s Double Whammy Sees Citi Cut Estimates After Purported AI Chip Delay
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Amidst a global rout of equities and technology stocks, NVIDIA's shares were dealt another blow after Citi reduced its 2025 sales estimate for NVIDIA and removed the shares from its 30 day catalyst watch. The bank kept its $150 share price target for NVIDIA and a Buy rating, adding that the feverish demand for the firm's H100 and H200 chips could help it mitigate some of the impact from the purported Blackwell delay.
An NVIDIA statement given to Wccftech earlier had refused to comment on rumors and shared that Blackwell was on track to ramp up in the second half of this year. An hour before trading, its shares had lost 14% in pre market, as they led the broader technology sector's declines.
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Citi Removes NVIDIA From 30-Day Catalyst Watch, Keeps Price Target At $150
The current volatility in US equities follows after a worrying jobs report last week coupled with an interest rate hike in Japan, which became the latest in the upset of the delicate link of variables that underpin the global financial system. Over the weekend, Warren Buffett's Berkshire Hathaway also cut its stake in Apple, indicating to some investors that Buffett is now holding hundreds of billions of dollars in cash as he anticipates a recession on the horizon.
For NVIDIA, whose shares have lost more than 20% since they peaked earlier this year to allow it to become the most valuable company in the world, August has come with a double whammy of sorts. After an earlier report claimed that its leading edge Blackwell AI processors might be delayed, the stock was caught up in the current storm surrounding technology equities with the latest report from Citi further adding to its woes.
According to Citi, a potential three month delay in NVIDIA's Blackwell chips can
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