Cook argues that while U.S. export controls may cause immediate fluctuations in Nvidia's stock, they are unlikely to affect its long-term valuation as much as the demand for the GB200 NVL72. Nvidia's stock has shown resilience, quickly recovering from market reactions to export restrictions. Cook believes that Nvidia's strong customer base, including major hyperscalers and new projects like Stargate in the Middle East, will sustain demand for its AI chips. He emphasizes that consistent or exceptional delivery expectations for the GB200 NVL72 units will overshadow any short-term revenue fluctuations, indicating a positive outlook for the rest of the year.
Key takeaways:
- Nvidia is set to report earnings for the first quarter of its fiscal year 2026, with significant attention on the impact of U.S. chip export controls and the rollout of its new GB200 NVL72 hardware.
- The GB200 NVL72, a single-rack exascale computer with 72 GPUs, is seen as a critical area for shareholders, with expectations of delivering up to 10,000 units in Q2.
- Kevin Cook from Zacks Investment Research suggests that the demand for the GB200 NVL72 will have a more significant long-term impact on Nvidia's valuation than the immediate effects of U.S. export controls.
- Despite potential challenges with chip export restrictions, Nvidia is expected to maintain strong demand for its AI chips, with new projects like Stargate's in the Middle East contributing to its growth.