Nvidia shareholders are anxiously waiting for mass shipments of the company's next-generation Vera Rubin hardware. The wait could be extended a little while yet but that's not an issue for the stock, according to KeyBanc analysts.
Nvidia shares were up 1.3% at $206.05 in premarket trading Tuesday. The stock has risen 9.1% this year so far through to Monday's close, lagging well behind the broader chip sector.
The big hope for Nvidia is that the rollout of its Vera Rubin hardware will remind customers and the market that its processors are still the best for artificial intelligence, dispelling concerns about broadening competition.
But an issue with controlling heat in servers containing its Rubin graphics-processing units has led to a small delay to larger shipments, according to KeyBanc analyst John Vinh, citing discussions with participants in the Asian supply chain.
"We're seeing a slight delay in the ramp of Rubin due to the thermal lid issues, which have been resolved, but are seeing indications that Rubin will start ramping in July," Vinh wrote in a research note Monday.
Nvidia didn't immediately respond to a request for comment from Barron's early on Tuesday.
The thermal issue shouldn't be a major problem for Nvidia, according to Vinh, who still forecasts the company will ship between 1.7 million and 1.8 million Rubin chips this year, alongside 5.5 million-6.0 million units of its current-generation Blackwell hardware.
Vinh increased his price target on the stock to $330 from $310, maintaining an Outperform rating. The price target is based on a price-to-earnings ratio of 25 times KeyBanc's forecast for Nvidia's fiscal 2028 earnings.
"With significant barriers to entry created by its CUDA software stack, we see limited competitive risks and expect Nvidia to continue to dominate one of the fastest-growing workloads in cloud and enterprise," Vinh wrote.
Nvidia was named a Barron's stock pick on May 13, when shares were trading at $226.
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.
(END) Dow Jones Newswires
July 14, 2026 07:37 ET (11:37 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments