Nvidia was falling on the last day of an eventful week for chip makers.
Nvidia shares were down 1.4% at $122.34 in premarket trading Friday. The stock closed 0.4% higher on Thursday.
Concerns that delays of Nvidia's next-generation Blackwell chips will persist could be weighing on the leading chip maker's stock. In early August, a report citing industry sources said volume shipments of the Blackwell B200 chip would be delayed for three months.
Many on Wall Street are still bullish. Susquehanna analyst Christopher Rolland notes that its pricing still holds up well and that the investment case for Nvidia remains strong.
"Nvidia has become the world's de facto enabler of AI," Rolland wrote in a note Thursday. While others now offer similar AI accelerators for less, Rolland says Nvidia's competitive advantages lie in the vertical integration of semiconductor design, holistic systems, and software.
It has also increasingly focused on building AI supercomputers rather than standalone chips, providing significant performance advantages, according to Rolland.
Out of 64 analysts covering the stock, 94%, including Rolland, rate Nvidia Buy, according to FactSet. The average price target is $149.49, implying a 20.5% upside.
Chip stock rallied Thursday after memory-chip maker Micron Technology reported better-than-expected earnings Wednesday after market close which indicated chip makers still have room to grow.
Nvidia shares have risen 150% so far this year and through to Thursday's close. That compares with a 20% rise in the S&P 500 index and a 21% rise in the Nasdaq Composite Index over the same period.
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