Lead times for Nvidia's AI GPUs narrow, suggesting expanded production capacity
1 mins
Published by: Alina Chernomorets
20 March 2024, 03:30PM
Nvidia's AI GPU wait times have decreased, indicating potential production growth.
UBS analysts report lead times have dropped to 3-4 months from 8-11 months last year.
Shorter lead times may suggest the AI market is slowing down, posing challenges for Nvidia and investors.
However, it could also mean higher revenue if due to increased production capacity.
UBS and Morgan Stanley raised Nvidia's price targets, showing confidence in its future performance ahead of the February 21 earnings report.
Lead times for Nvidia's AI GPUs narrow, suggesting expanded production capacity
Nvidia's GPU wait times for AI uses are shorter lately, hinting at potential production growth. This change could signal a shift in the market, seen either positively or negatively.
UBS analysts noted a significant decrease in lead times, now ranging from 3-4 months compared to 8-11 months last year. This could mean Nvidia is preparing for increased production or fulfilling existing orders faster.
Shorter lead times may imply the AI boom is winding down, which isn't ideal for Nvidia or investors. However, it could also mean increased revenue if it's due to higher production capacity.
UBS raised Nvidia's price target to $850, indicating confidence in its future performance. Morgan Stanley's recent target increase to $750 suggests growing optimism. Nvidia's earnings report is awaited on February 21.
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