3 hours ago
5
Key Takeaways
- A thermal lid complication has caused a minor setback in Nvidia’s Vera Rubin chip production timeline, according to KeyBanc analyst John Vinh
- Production volume expectations remain unchanged at 1.7M–1.8M Rubin units for the year, with deliveries beginning in July
- KeyBanc upgraded its NVDA price target from $310 to $330 while maintaining an Outperform recommendation
- Shares traded near $203–$205 on Tuesday, reflecting a decline of approximately 3.4%
- Company insiders have divested nearly 1.9 million shares valued at roughly $410.6M in the last three months
Shares of Nvidia tumbled as much as 3.4% during Tuesday’s session, starting the day at $203.69, following reports that its upcoming Vera Rubin chip deployment would face a modest delay. However, market analysts remain largely unfazed by the setback.
In a research note published Monday, KeyBanc’s John Vinh identified a thermal lid manufacturing challenge affecting Nvidia’s Rubin GPU production. While the technical issue has been addressed, it resulted in a pushed-back schedule for volume shipments.
“We’re seeing a slight delay in the ramp of Rubin due to the thermal lid issues, which have been resolved, but are seeing indications that Rubin will start ramping in July,” Vinh noted.
The analyst’s insights came from discussions with Asian supply chain sources, a frequently utilized method for obtaining advance intelligence on semiconductor manufacturing schedules.
Despite this production bump, Vinh maintained his annual shipment projection unchanged — between 1.7 million and 1.8 million Rubin chips, alongside 5.5 million to 6.0 million units of existing Blackwell architecture.
Vinh also increased his NVDA price objective to $330 from the prior $310 target while reaffirming his Outperform recommendation. The updated valuation applies a 25x multiple to KeyBanc’s fiscal 2028 earnings projections.
Wall Street Consensus Remains Positive
Vinh’s constructive outlook aligns with broader Street sentiment. Among 53 analysts monitored by MarketBeat, 48 rate the stock as Buy, two designate it Strong Buy, and only three maintain Hold ratings. The average price objective stands at $303.84.
Bank of America, Cantor Fitzgerald, and Robert W. Baird have all published or reaffirmed positive recommendations recently, with price targets spanning from $270 to $500.
NVDA’s 52-week trading range extends from a low of $162.02 to a high of $236.54. Through Monday’s close, the stock had gained 9.1% year-to-date, though it has underperformed the wider semiconductor sector.
Notable Insider Transaction Activity
While professional analysts maintain constructive views, company insiders have been reducing positions. Director Mark A. Stevens divested 885,000 shares on June 18th at an average price of $210.17, generating approximately $186 million in proceeds. Director Stephen C. Neal sold 15,500 shares on June 3rd at $215.73 per share.
Collectively, corporate insiders have liquidated roughly 1.9 million shares valued at approximately $410.6 million during the past 90-day period. Company insiders currently control just 3.94% of outstanding stock.
Nonetheless, institutional stakeholders maintain 65.27% ownership of NVDA, and Plimoth Trust Co. LLC increased its stake by 3.1% during Q1, elevating its NVDA holdings to approximately $22.59 million — representing the fund’s second-largest equity position.
Nvidia most recently disclosed quarterly results on May 20th, delivering $1.87 in earnings per share, surpassing the $1.76 analyst consensus. Revenue reached $81.61 billion compared to forecasts of $78.42 billion — representing 85.2% year-over-year growth.
The company simultaneously announced an $80 billion stock repurchase authorization and increased its quarterly dividend to $0.25 per share — a substantial jump from the previous $0.01 distribution.
With a consensus analyst price target of $303.84, Nvidia shares carry an implied upside potential of approximately 49% from Tuesday’s trading levels around $203.
The post Nvidia (NVDA) Stock Drops 3.4% on Rubin GPU Delay — Analysts Remain Confident appeared first on Blockonomi.
English (US) ·