Nvidia's Earnings: Analyst Sees Minor Impact from Blackwell Delay, but Cautions on Caveat

Top Analyst's Outlook on Nvidia's Blackwell Delay and Earnings

Ahead of Nvidia's earnings report, top analyst Vivek Arya of Bank of America has provided insights on the potential impact of the Blackwell GPU delay. While he anticipates a minor effect on near-term revenue, he raises a concern regarding the company's ability to meet demand for its Hopper architecture GPUs.

Blackwell Delay and Revenue Impact

The Blackwell GPU, initially intended for release in 2023, has been delayed due to technical challenges. Arya estimates this delay will result in a modest reduction in Nvidia's revenue for the current quarter, as the Blackwell was expected to contribute to the company's data center and gaming segments.

However, Arya emphasizes that the Blackwell delay is not expected to significantly impact Nvidia's long-term growth prospects.

Concern over Hopper GPU Demand

While the Blackwell delay may have a limited revenue impact in the short term, Arya expresses concern about Nvidia's ability to meet demand for its Hopper architecture GPUs, particularly the H100. The H100 is designed for use in high-performance computing (HPC) and artificial intelligence (AI) applications.

Arya cites reports of supply constraints for the H100, suggesting that Nvidia may face challenges in fulfilling orders from customers.

Potential Impact on Earnings

If Nvidia is unable to meet demand for its Hopper GPUs, it could potentially affect the company's overall earnings. However, Arya notes that the extent of this impact will depend on the severity of the supply constraints and the company's ability to ramp up production.

Investor Takeaway

Arya's analysis suggests that investors should approach Nvidia's upcoming earnings report with a cautious optimism. While the Blackwell delay may have a modest impact on revenue, the concern over Hopper GPU supply constraints presents a potential risk to the company's earnings outlook.