Key Takeaways
- Recent losses for Nvidia and Advanced Micro Devices shares could offer an opportunity for investors to buy the dip, Piper Sandler analysts said.
- The analysts expect both of the chipmakers to benefit from surging demand for artificial intelligence (AI) chips.
- The analysts said they see no “meaningful” impact from a reported delay in Nvidia’s Blackwell AI chip, citing Nvidia’s recent statements.
Nvidia (NVDA) and Advanced Micro Devices (AMD) shares lost ground Wednesday, after a tough stretch for the chip stocks with a global sell-off earlier in the week and reported delays in the launch of Nvidia’s new Blackwell chip.
However, recent losses could offer an opportunity for investors to “buy the dip,” Piper Sandler analysts said, expecting both chipmakers to benefit from the artificial intelligence (AI) boom.
No ‘Meaningful’ Impact To Nvidia Expected From Potential AI Chip Delay
Nvidia told Investopedia Tuesday that Blackwell production is “on track” to ramp in the second half of the year, adding, “beyond that, we don’t comment on rumors.”
Piper Sandler analysts said they interpreted the company’s comments to mean Nvidia “is not anticipating any meaningful impact or delays to the timing of its Blackwell chip.”
The analysts said that if the Blackwell ramp is delayed, it could have a roughly $1 billion impact on the October quarter and a between $2 billion and $3 billion effect on the January quarter.
Nvidia may provide additional information about the reported delays in its earnings report set for Aug. 28.
AMD Poised To Grow Accelerator Market Share
Piper Sandler analysts called AMD a “top pick” for AI investors, highlighting its potential to gain as well, citing its product leadership, possible benefit from a Blackwell delay, and positioning to gain from Intel’s (INTC) recent challenges.
AMD could grow to hold a larger share of the accelerator market in the coming years, the analysts said, as it gains on competitors.
Shares of Nvidia finished 5.1% lower at $98.95 Wednesday, while AMD lost 1.2% to $128.67. However, even with Wednesday’s losses, Nvidia shares have nearly doubled in value since the start of the year. AMD shares were down close to 13% over the same period.