Nvidia Stock Offers 'Buying Opportunity' Below $100 - Supplier Woes Suggest Caution, Says Analyst

Nvidia Corp NVDA has been the poster child of the AI revolution, but cracks are showing as supplier delays and technical indicators flash warning signs.

Analyst Beth Kindig, typically bullish on Nvidia, recently sounded the alarm after scrutinizing supplier commentary.

Key suppliers for Nvidia's GB200 NVL systems are not exactly inspiring confidence in Q1 and fiscal year guidance. Instead, a few have actually lowered guidance.

Tomorrow, keep an eye on your inboxes as I break down the mixed signals that I'm hearing from Nvidia suppliers for the…

— Beth Kindig (@Beth_Kindig) February 22, 2025

The takeaway? The GB200 rollout might not be as smooth as expected and NVDA stock could feel the heat.

Supplier Red Flags: Delays Mount

Super Micro Computer Inc SMCI, a key Nvidia partner, trimmed its fiscal 2025 revenue guide, citing Blackwell GPU delays. CEO Charles Liang had previously expected 30% of racks to use direct liquid cooling (DLC) by mid-2025. That target has now quietly slipped to early 2026.

Worse, SMCI admitted they can't ship Blackwell NVL systems in volume for the March quarter—a red flag for Nvidia's near-term growth.

Vertiv Holdings Inc VRT, another Nvidia ecosystem player, reported strong fourth quarter results but guided for softer first quarter growth, blaming “timing differences” in AI shipments. Meanwhile, PCIe 6.0 and PMIC suppliers, crucial for Blackwell systems, now expect volume deployments only in the back half of the year.

Semtech's SMTC decision to pull guidance on active copper cabling further reinforces the narrative of a bumpy road.

Read Also: AMD Reshapes Strategy, Plans $4 Billion Data Center Asset Sale While Doubling Down on GPUs

NVDA Stock Technicals: Momentum Fades

Chart created using Benzinga Pro

NVDA stock has cooled off year-to-date, down 2.83%, despite a stellar 69.93% gain over the past year. The stock is struggling near its 50-day moving average, a key technical level that often signals whether bullish momentum can continue or falter.

Trading volumes have thinned and the relative strength index (RSI) is around 50, indicating fading buying pressure. If NVDA stock breaks below $110, it could trigger a deeper pullback toward the $100 psychological support—a level that aligns with Kindig's view of a potential “buying opportunity” if the stock dips further.

Q4 Earnings Catalyst Or Reality Check?

With earnings on deck (reports fourth quarter after market close on Wednesday), Nvidia faces a moment of truth.

If management acknowledges the supplier delays, the stock could slip further. However, strength from Hopper and B200 systems might offset the near-term Blackwell hiccup.

Investors should brace for volatility. Nvidia's AI dominance isn't in question, but the road ahead looks bumpier than bulls might like.

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