Nvidia stock is in a ‘soul-searching’ moment

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Investors’ voracious appetite for all things Nvidia (NVDA) might have cooled slightly of late, but the chill is temporary and the feast itself has only just begun, according to one Wall Street semiconductor analyst.

“I think some of these [issues] are growing pains,” Bank of America analyst Vivek Arya told Yahoo Finance Executive Editor Brian Sozzi during an episode of Yahoo Finance’s Opening Bid podcast (video above, listen below).

Shares of the market darling and Dow Jones Industrial Average component are down 8.5% in the past month. The Dow is down modestly in the past month, while the S&P 500 has tacked on a 0.5% gain.

Added Arya, “Look at any of these large magnificent whatever stocks. Each one of them has gone through this soul-searching moment periodically.”

That soul searching for Nvidia’s stock, according to Arya, is related to several factors, including execution issues while trying to push through leading innovation and concerns around China exposure ahead of potential tariffs from returning president Trump.

“Some of these are company-specific forces,” Arya said of the issues, “and some of these are market forces.”

The switch to Nvidia’s touted AI chip Blackwell hasn’t been a seamless one, Arya explained, which has unnerved the bulls.

“The last two quarters have not been clean because they are going through the growing pains from one generation of product to a new generation,” said Arya.

Read more: Why Nvidia’s Blackwell won the 2024 Yahoo Finance Product of the Year award

Blackwell, which was rolled out in March at the company’s annual GPU conference, was hailed as Nvidia’s most powerful and innovative offering. But bringing the completed idea in the form of a product to the masses has proven itself to be more difficult.

“Since [March], what we have seen is execution issues keeping it out of the hands of customers,” he said.

Nvidia’s issues with mask and system-level configurations may be…

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