Shares of Nvidia Corporation (NASDAQ:) climbed 2.5% in pre-market trading on Wednesday following a positive industry update from Trendforce.
The report provided an optimistic outlook on Nvidia’s production progress, particularly regarding the Blackwell NVL / GB200 system. This contributed to a bounce in Nvidia shares, which yesterday saw levels below $130/share for the first time since October.
According to the Trendforce update, production of the Blackwell NVL/GB200 system is progressing as expected, despite discussions of delays due to cooling and heat control issues. It also indicated that mass production is anticipated to reach its peak between the second and third quarters of 2025.
“I feel like NVDA stock definitely already discounts at least some of this delay / push out and is why rev guide for Jan qtr was conservative and BELOW the buyside whispers of $39-40B,” Mizuho TMT specialist Jordan Klein commented.
Investors appear to have responded positively to the news, which may alleviate concerns about production setbacks.
Klein also suggested that Nvidia likely offered conservative revenue guidance for the January quarter, which was set below the expectations of $39-40 billion, in a strategic move in light of the potential production delays.
“Our recent supply chain discussions indicate Nvidia’s cowos foundry capacity allocation is expected to grow to 60% in 2025 from 56% in 2024, pointing to continued GPU momentum in 2025,” Citi analyst Atif Malik wrote today.
Nvidia shares are up 163% year-to-date.
