NVIDIA's catalyst for an increase is here? Stay tuned for Jensen Huang's speech on Wednesday

After a sharp drop of nearly 14% last week to a one-month low, NVIDIA may see a catalyst for a stock price increase this Wednesday. NVIDIA CEO Jensen Huang is scheduled to speak at a Goldman Sachs conference in San Francisco on that day, planning to talk with Goldman Sachs CEO Solomon at 7:20 am local time.

Due to the lack of other positive factors boosting the stock price, coupled with concerns affecting the entire technology industry, the resistance encountered by Blackwell has intensified market concerns about NVIDIA's rapid and excessive rise as a darling of the AI concept. Since the release of the financial report after the market on August 28th, NVIDIA has dropped by over 10%. As of the close of this Tuesday, which recorded two consecutive days of rebound, NVIDIA's stock price has cumulatively dropped by nearly 14%.

Last month, it was reported that NVIDIA's latest architecture Blackwell series chips would be delayed for three months or more. At the end of last month, the second-quarter performance announced by NVIDIA continued to exceed expectations, but it failed to alleviate investors' concerns about the production delay of Blackwell chips. NVIDIA executives stated that Blackwell samples had been delivered in the second quarter, but due to mask defects in the production process, the delivery time was delayed by a few weeks. Improvements were made to Blackwell, and it is expected that Blackwell chips will bring in billions of dollars in revenue in the fourth quarter, without clarifying whether this revenue is incremental.

Subsequent comments mentioned that NVIDIA's second-quarter performance was outstanding, but the market had set expectations too high for this top student. Investors have become accustomed to NVIDIA's gushing growth far exceeding expectations every quarter. However, NVIDIA's third-quarter revenue guidance indicates a slowdown from consecutive five quarters of triple-digit percentage growth to nearly 80%, which some interpret as a sign of cooling demand for AI chips. After the release of the financial report last month, Jensen Huang attempted to reassure the market by stating that revenue from Blackwell chips would arrive soon, but some investors still eagerly awaited details.

Wall Street News once mentioned that analysts believe the most significant news during NVIDIA's second-quarter earnings call was the acknowledgment of some issues with the upcoming Blackwell chip design. Analysts hoped to receive more details about the launch of the Blackwell product line, but NVIDIA did not provide them, leading to a rapid decline in the stock price during the earnings call. The market mainly has two major concerns: when Blackwell can become the new engine for NVIDIA's performance growth, and whether the demand for AI chips can sustain high growth.

Regarding Jensen Huang's speech at the Goldman Sachs conference this Wednesday, commentators believe that the focus will be on issues related to the Blackwell chip. Investors are eagerly awaiting the latest developments in the development of this chip, hoping for a catalyst to reverse the downward trend in the stock priceZacks Investment Management Inc. client portfolio manager Brian Mulberry commented, "No one likes delays. This is one of those little episodes that investors pay attention to." While NVIDIA has done well in managing expectations, "they may be able to do better in communication, especially on the Blackwell issue."

Analysts at Bank of America share the same view, writing in a research report last week that details about the shipment readiness of the Blackwell chip are a key fundamental catalyst driving the rebound in NVIDIA's stock price