Nvidia rises even as Baird calls it 'steering-less' stock with no V-shaped recovery coming
Justin Sullivan

Nvidia (NASDAQ:NVDA) shares rose on Thursday despite the company issuing weak guidance for the third-quarter and investment firm Baird calling the stock "steering-less" with no chance of a sharp rebound coming anytime soon. 
Analyst Tristan Gerra, who has a neutral rating on Nvidia (NVDA), noted that even though the company is working on getting its inventory picture right, it's likely there will be "at least a couple of quarters" of this going on, even with new product launches. And with the stock trading where it's at, it's enough to keep the firm on the sidelines.
"We see a steering-less stock for the rest of this year as [year-over-year comparisons] continue to slow, with no V-shape recovery in sight," Gerra wrote in a note to clients.
Nvidia (NVDA) shares gained more than 2.5% to $176.72 in late-day trading.
In addition, Gerra pointed out that Nvidia (NVDA) said it would continue to "significantly" under-ship consumer GPUs despite the expected launch of the RTX 40 series, as well as the appearance of inventory deleveraging in the data center as two key issues to watch.
The analyst also noted that continued weakness in notebook sales, along with the expected fork of Ethereum taking place next month and weaker gross margins due to lower-end GPU mix going forward and the lower-margin auto business starting to ramp up as potential points of contention for investors.
Separately on Thursday, a number of analysts noted that there are several upcoming catalysts for Nvidia's (NVDA) stock, including product launches and the GTC conference in September.