All eyes on Nvidia stock as Blackwell overheating issues emerge

Core Viewpoint - Nvidia's upcoming Q3 earnings report is overshadowed by concerns regarding overheating issues with its next-generation Blackwell chips, which could impact investor sentiment and stock performance [1][5]. Group 1: Blackwell Chip Concerns - The Blackwell chips, initially delayed, are experiencing overheating in server racks, raising concerns about the timely launch of new data centers [1]. - Increased demand for Blackwell chips is expected, potentially benefiting Nvidia's stock price, as analysts have raised price targets based on their role in the AI boom [2][6]. - If Nvidia resolves the overheating issues by early 2025, the stock could rise to between $200 and $250, driven by strong earnings growth [4]. Group 2: Stock Performance - Following the news of the Blackwell chip issues, Nvidia's stock price fell over 2% in premarket trading, dropping below $140 to $138.70 [3]. - The stock has shown a year-to-date surge of 194%, but the current weakness may affect its performance ahead of the earnings report [6][8]. - Analysts project earnings of $0.75 per share and revenues of $33.09 billion for the quarter ending September 2024, indicating over 80% year-over-year growth [7]. Group 3: Market Reactions and Predictions - Nvidia's stock typically experiences volatility before earnings but tends to rise afterward, complicating the current situation due to Blackwell chip issues [8]. - Wall Street analysts have mixed targets for Nvidia post-earnings, with many maintaining that a $200 target is achievable [9].