Nvidia Stock Rises. This Issue Could Hamper Its Next-Generation AI Chips. -- Barrons.com

Dow Jones04-06

By Adam Clark

Nvidia was edging up early on Monday but the chip maker might have had to scale back its production plans for its next-generation artificial-intelligence chips, according to KeyBanc.

Nvidia shares were up 0.4% at $178.05 in premarket trading. The move was broadly in line with the wider market, with S&P 500 futures gaining 0.1%.

Nvidia remains broadly range-bound, with eyes on the ramp up of its Vera Rubin AI servers this year. CEO Jensen Huang has said the hardware is in "full production," with sales expected in the second half of the year.

Vera Rubin AI servers are set to be 3.3 times faster than the current top-of-the-range Blackwell Ultra equivalent. They are powered by Rubin graphics-processing units and Vera central-processing units.

However, Nvidia might have had to lower production of Rubin graphics-processing units in 2026 to around 1.5 million from a planned 2 million, according to KeyBanc analyst John Vinh. The reduction is due to delays in procuring sufficient high-bandwidth memory from suppliers SK Hynix and Micron Technology, he added.

But Vinh doesn't see the delay as a major issue, keeping an Overweight rating and $275 target price on Nvidia shares.

Nvidia didn't immediately respond to a request for comment early on Monday.

Among other chip makers, Broadcom was up 0.5% and Advanced Micro Devices was rising 0.7% in premarket trading.

Write to Adam Clark at adam.clark@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

 

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April 06, 2026 08:17 ET (12:17 GMT)

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