Semiconductor company Nvidia (NVDA) has a problem with its new artificial intelligence (AI) chips causing customer delays. Nvidia is dealing with issues in its new Blackwell graphics processing units (GPUs) that are causing instability with the AI chips. This is delaying customers from setting up data centers using the technology.
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These issues appear to be affecting server racks using the Blackwell GPUs. Because of these issues, some customers are canceling their orders. Among them are Microsoft (MSFT), Amazon (AMZN), Alphabet’s (GOOGL) Google, and Meta Platforms (META). That’s bad news for NVDA as this harms its reputation in the AI chip space due to the delays costing customers money.
NVDA shareholders aren’t happy about reports of Blackwell issues and server rack orders being canceled. As such, the company’s stock is down 2.49%. Nvidia shares are still up 135.09% over the last year but have had a rough start to 2025 with a 1.32% drop year-to-date.
Other Issues Hitting NVDA Stock Today
It’s not just AI server racks causing problems for Nvidia shares on Monday. Another issue weighing on the stock is updates from analysts. That includes 4.5-star HSBC analyst Frank Lee cutting his price target for NVDA stock from $200 to $185 per share. While the analyst maintains a Buy rating for the shares, his price target drop shows he isn’t as bullish on the company’s growth as before.
Next, President Joe Biden introduced new limitations on AI chip exports. The administration is restricting chip exports to the U.S.’s closest allies to protect the country’s AI dominance. This sparked a backlash from Nvidia, which claims this action is a “sweeping overreach.”
IS NVDA Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus for Nvidia is Strong Buy based on 36 Buy and three Hold ratings over the last three months. With that comes an average price target of $177.76, a high of $220, and a low of $140. This represents a potential 34.91% upside for NVDA shares.
