Nvidia was edging lower early Tuesday. The chip maker's new Blackwell hardware likely will hit the market late this year and provide a catalyst for the stock, according to analysts at UBS.
Nvidia shares were down 0.63% in premarket trading. The stock closed flat on Monday.
Nvidia has erased losses from earlier this month when its shares dropped below $800. However, it remains short of its highs of about $950 as it prepares to launch its new range of Blackwell chips.
Compared with Nvidia's existing Hopper chips, Blackwell can train an AI model with one quarter as many graphics-processing units and almost as significant a reduction in power consumption, said CEO Jensen Huang.
UBS analyst Timothy Arcuri wrote in a research note Monday that the Blackwell chips could start shipping in December.
"Blackwell shipments are commencing a little later than our original October assumption with test timelines suggesting late November or December as more likely," Arcuri wrote.
That means Nvidia could have a patch of slower growth in the October quarter but that's not a reason to worry about the chip maker, according to the analyst.
"Hopper demand remains much stronger than one would normally expect ahead of a big product transition. On top of this, we see such strong Blackwell demand -- and systems mix in particular -- that we are raising estimates and PT [price target] yet again," Arcuri wrote.
Arcuri maintained a Buy rating on the stock and raised his target price to $1,150 from $1,100. The target is based on a price-to-earnings ratio of 28 times Nvidia's forecast earnings of $41.04 a share in 2025.
Among other chip makers, Advanced Micro Devices was down 0.1% and Intel was flat in premarket trading. AMD reports first-quarter earnings on Tuesday after the stock market closes.
Nvidia shares have risen 77% this year through to Monday's close. That compares with a 7.3% increase in the S&P 500 index and a 6.5% gain in the Nasdaq Composite over the same period.