Nvidia Stock Rises. Why Next-Gen Chip Concerns Are Overblown.

Nvidia chips are the favored choice for training artificial-intelligence models. (David Paul Morris/Bloomberg)

Nvidia gained ground early Monday as investors look ahead to its earnings report next week and weigh reports on its next generation of artificial-intelligence processors.

Nvidia shares were up 1% to $182.24 in morning trading after falling 0.9% Friday. The S&P 500 and the Nasdaq Composite traded largely flat.

Nvidia stock is likely to be range-bound ahead of its earnings report on Aug. 27.

“While the near-term bar is higher now, the 12-month picture across demand, supply, and competitive outlook all continue to be very favorable,” noted Morgan Stanley analysts led by Joseph Moore, saying supply issues are “the gating factor” for sales.

The analyst raised his price target on the stock to $206 from $200, maintaining an Overweight rating.

On company-specific concerns, Nvidia has pushed back against an analyst report suggesting it is delaying the production of its next-generation Rubin hardware to better match chips from rival Advanced Micro Devices . Analysts at Jefferies suggest any concerns are likely overblown.

“We are not refuting whether or not a metal change may have been needed, as is the case with many chips, but we believe the timing is on track for production to start in 2Q26 and server volumes to start late 3Q26,” wrote Jefferies equity sales specialist William Beavington in a research note on Sunday.

Among other chip makers, Advanced Micro Devices was down 0.8%. Broadcom fell 1.9% in early trading.

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