Nvidia stock fell into the red on Friday. Some worry it might be overvalued or in a bubble. But many investors see the drop as temporary. Strong demand for Nvidia’s Blackwell chips, positive guidance, and analyst upgrades suggest a bounce could be coming.
Blackwell demand is at record levels. Last quarter, Nvidia made $51.2 billion in revenue from Blackwell. CEO Jensen Huang called the launch “off the charts.” Big customers, including cloud companies, are ordering huge clusters, sometimes more than 100,000 GPUs at once. This has created a near-term supply crunch, with backlogs stretching into late next year.
Revenue is still climbing, with Q3 estimated at around $57 billion. Gross margins remain strong, around 70%, and are expected to improve as Blackwell volumes rise. Historically, Nvidia shares rebound quickly when production bottlenecks ease or new supply news comes out.
Analysts are still very bullish. Price targets range from $248 to $258, with some going as high as $275. Most ratings are Buy. Management’s forecast of $43-$44 billion for Q1 shows growth is continuing, which could attract new buyers and push the stock up.
Past drops like this in 2024 were short-lived, often reversing 8–15% in a week after supply or earnings news. Investors should expect volatility, but the fundamentals remain strong. Key things to watch are supply updates, analyst ratings, and broader economic signals.
If supply and guidance stay strong, Friday’s dip could be a buying opportunity rather than the start of a decline.
