Nvidia’s stock, NVDA, declined by 3.4% on Tuesday, hitting $203.69, as news of a delay in the rollout of its next-generation Vera Rubin chips surfaced. This setback stems from a resolved thermal lid issue, according to KeyBanc analyst John Vinh, who still maintains an optimistic outlook for the company's overall chip shipments this year.

Delay and Analyst Insights

Vinh highlighted the thermal problems impacting the production timeline but assured that mass shipments would commence in July. Despite this hiccup, he has kept his annual shipment forecast steady, estimating deliveries between 1.7 million to 1.8 million Rubin units, along with 5.5 million to 6 million units of the existing Blackwell hardware. Following the update, KeyBanc raised its price target for NVDA from $310 to $330, maintaining an Outperform rating. This new price target is based on a projection of 25 times fiscal 2028 earnings estimates.

Wall Street Bullish on NVDA

The sentiment among analysts remains bullish despite the recent dip. Out of 53 analysts tracked by MarketBeat, 48 have rated NVDA as a Buy, with an average price target of $303.84. Other major investment firms, including Bank of America and Robert W. Baird, have reiterated positive outlooks, setting target prices ranging from $270 to $500. Year-to-date, NVDA shares are up 9.1%, although they have underperformed compared to the broader semiconductor sector. The stock has experienced a 52-week range, with a low of $162.02 and a high of $236.54.

Insider Activity Raises Questions

While analyst ratings remain optimistic, insider selling is worth scrutiny. Over the past 90 days, corporate insiders sold about 1.9 million shares, valued at approximately $410.6 million. Notably, Director Mark A. Stevens sold 885,000 shares at an average price of $210.17, while Director Stephen C. Neal sold 15,500 shares. With insiders now owning only 3.94% of shares, market observers may question this selling trend. In contrast, institutional investors hold a substantial 65.27% stake, reflecting ongoing confidence among larger shareholders.

This material is for informational purposes only and does not constitute financial advice.