Launch Delay Rumors Debunked! NVIDIA's Counterattack Signal Emerges

▲ Source: NVIDIA Twitter ©CoinReaders

NVIDIA's stock price recovered the $198 level, directly refuting rumors of a delay in the launch of its next-generation AI server platform. However, despite its status as an absolute powerhouse in the AI semiconductor market, its stock price growth rate this year has significantly lagged behind competitors. This has led to an analysis that it is a situation where the appeal of undervaluation clashes with concerns about slowing growth.

According to TradingNews, an investment media outlet, on July 7 (local time), NVIDIA's stock traded at approximately $198.34, up more than 1%, after the company denied reports that its next-generation 'Kyber NVL144' AI rack had been delayed until 2028. NVIDIA emphasized that its "product roadmap is proceeding as planned," dismissing market concerns. However, the media explained that the stock's rise was again limited in the $198-$203 resistance zone, and it has not fully broken out of the downtrend channel.

The media evaluated NVIDIA's stock performance this year as falling short of market expectations. Its year-to-date increase was only about 5%, while SOXX, a semiconductor industry ETF, rose 59%, and competitor AMD surged over 100%. In response, market analysis suggested that this was because the expectation of NVIDIA being the biggest beneficiary of AI was already largely reflected in its stock price, and coupled with a concentration of investor interest, further valuation expansion became difficult.

On the other hand, investment bank Goldman Sachs positively assessed the current valuation. NVIDIA's 12-month forward price-to-earnings ratio (PER) is 21.7x, significantly below its five-year average of 72x and close to the S&P 500 average, suggesting an attractive price point. Furthermore, as major cloud companies like Microsoft, Alphabet, Meta, and Amazon are expected to expand their AI infrastructure investments from $650 billion in 2026 to $1 trillion in 2027, NVIDIA is highly likely to be the biggest beneficiary of increased AI chip demand.

Technically, the $198-$203 range was presented as a key short-term resistance level. Analysis suggested that if it fails to break through this, there is a possibility of a decline to $184.70. Conversely, if it surpasses $212, it could break out of the downtrend channel, signaling a trend reversal, the media predicted. The Relative Strength Index (RSI) was 46.58, below the neutral line of 50, indicating that short-term momentum is not yet strong.

Wall Street's view remains optimistic. According to the media, 38 analysts maintain a 'Strong Buy' rating on NVIDIA, with an average target price of $298.87-$303.84, suggesting an upside potential of approximately 50% from the current stock price. NVIDIA also maintains a solid financial structure, supported by an $80 billion share repurchase program and a high gross profit margin of 74.1%. However, some sources added that a slowdown in the AI investment frenzy, the spread of low-cost Chinese AI models, and recession concerns could act as future variables for the stock price.

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