Investors may want to consider using the recent weakness in Nvidia to snatch up shares of the artificial intelligence darling, according to some Wall Street analysts. The chipmaker sold off nearly 5% Wednesday following comments from Super Micro Computer that pointed to some supply chain bottlenecks related to Nvidia and other competitors. NVDA 5D mountain Nvidia shares over the last five trading days Nvidia ticked down less than 1% Thursday, and shares sit about 11% off their highs. The stock is up about 189% for the year but down 9% since the start of August. Citi analyst Atif Malik encouraged investors to buy the weakness in shares, calling the supply concerns “overdone.” While constraints do exist within advanced packaging and high-bandwidth memory, he said the “comments are not fully reflective of Nvidia’s supply situation,” as it prioritizes hyperscalers and its own internal segments. Morgan Stanley’s Joseph Moore reiterated his overweight rating in a Wednesday note, adding that the stock remains a top semiconductor pick. Despite the concerns, the analyst expects a beat from the company in its next quarterly print and a raise, adding that “triangulating October quarter NVIDIA numbers from supply chain is an imprecise equation.” “Any supply chain limitations in the short term are just going to increase confidence in further upside down the road, so it’s really just a question of whether we see the upside now, or later,” he wrote. — CNBC’s Michael Bloom contributed reporting.
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