• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Stock

Lynx on Nvidia stock: Step aside and look for a better entry point

by November 20, 2024
written by November 20, 2024

Investing.com — Lynx Equity Strategies said investors should exercise patience with Nvidia (NASDAQ:NVDA)’s stock, stating they should “step aside and look for a better entry point” in a note Wednesday. 

The firm’s analysts highlight growing uncertainties tied to Nvidia’s product transitions, particularly the launch of its Blackwell GPUs, which have faced delays and technical issues.

While Nvidia’s CEO has described Blackwell demand as “insane,” Lynx points out that the high expectations for the product could be problematic if supply constraints persist or technical issues remain unresolved. 

“Are customers willing to plunk down ~$1bn-$2bn in upfront hardware cost for a 20K GPU datacenter without first gaining conviction that the problems associated with the initial delay in launch have been resolved? We do not think so,” the analysts state.

Adding to the concerns is the declining momentum for Nvidia’s Hopper GPUs. Lynx notes signs of softening demand for Hopper, highlighted by disappointing results from key partners like SMCI. 

The firm questions whether Nvidia’s current data center revenue growth expectations, which are projected at 50% year-over-year for late 2025, are realistic.

Beyond product-specific challenges, the analysts observe broader market dynamics, suggesting the AI hype cycle may be waning. They caution that as hyperscale customers increasingly prioritize return-on-investment metrics, Nvidia’s growth rates could decelerate significantly.

Despite Nvidia’s leadership in AI and a robust position in the GPU market, Lynx concludes that the stock’s current valuation leaves little room for error. They feel investors should wait for clarity on Blackwell’s performance and market adoption before making significant commitments.

 

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
Europe’s STOXX 600 flat in volatile trading; real estate weighs
next post
EVgo nears closure of $1.05 billion DOE loan, JPM notes

You may also like

BASF results down on impairments, restructuring

January 27, 2025

European chipmakers slump as traders gauge DeepSeek AI...

January 27, 2025

Nasdaq futures tumble as China’s AI push rattles...

January 27, 2025

China Vanke’s CEO, chairman resign amid growing liquidity...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

Italy’s MPS shares fall ahead of Mediobanca board...

January 27, 2025

British Land stock drops following stake sale

January 27, 2025

UMG shares rally after new multi-year pact with...

January 27, 2025

BASF shares indicated 3% lower as impairments drag...

January 27, 2025

Ryanair cuts 2026 traffic forecast amid ongoing Boeing...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks

      June 26, 2025
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

      June 26, 2025
    • Bumble shares jump 26% as dating company plans to axe 30% of workforce

      June 26, 2025
    • Small-business AI use is lagging, but one firm is channeling Sherlock Holmes and knocking out ‘grunt work’

      June 25, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (534)
    • Stock (6,426)

    Latest News

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

    Popular News

    • Inflation report poses test for stocks rally as Fed meeting looms
    • Earnings call: Option Care Health reports robust growth amid challenges

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy