Most industries panic when the innovation roadmap gets hit hard, but Nvidia just casually gets an optimistic thumbs up. KeyBanc remains convinced by the chip giant’s detour, although Blackwell Ultra may arrive just a little late, but will apparently steal the show. On Tuesday, KeyBanc Capital Markets indicated its vote of confidence in Nvidia, maintaining an Overweight rating on the stock with a price target of $190. Investors are encouraged due to the change in strategy by the chipmaker regarding its Blackwell Ultra product.

Instead of going forward with the more challenging Cordelia compute board, which has two CPUs and four GPUs, Nvidia is turning back to its Bianca board with a single CPU and two GPUs. Analysts see this change as very pragmatic in the face of anticipated delays, while also providing a smoother transition to GB300 architecture. The modification is also expected to ease the replacement of the present NVL72 rack construction from GB200 to GB300, making it easier for Nvidia to achieve back-end loaded shipments of the 30K GB NVL rack in the second half of the year.

Nvidia’s Potential of Growth

KeyBanc analysts have reaffirmed their faith in Nvidia’s growth potential with the $190 price target. As it is based on a 32x multiple of their Fiscal Year 2027 earnings-per-share (EPS) estimate of $6.02. As of now, Nvidia trades at a forward price-to-earnings (P/E) of 17x, which is significantly below the average for the sector at forward P/E multiple of 20x. The company argues that the case for growth potential remains valid, especially with Nvidia being at the forefront of growth in artificial intelligence and machine learning infrastructure.

For many analysts, even if the company shifts its products temporarily, its fundamentals would remain intact. The backward move to Bianca is an example of strategic recalibration and is not viewed as a setback, but as a flexible decision, which will keep Nvidia’s ambitious roadmap on track.

Monolithic Power Systems Adjust Targets for Analysts

In the chip sector, Monolithic Power Systems (MPWR) is gaining attention from the recent bylaw amendment, allowing shareholders with at least 30% ownership to call for special meetings. The amendment was disclosed in a recent SEC filing and is being seen as a shareholder empowerment move in an evolving governance environment. In the meantime, Stifel lowered its MPWR price target from $1,100 to $880 with a Buy recommendation due to uncertainties regarding Q2 2025 revenue. Truist and Needham reaffirmed positive outlooks, with price targets of $897 and $800, respectively.

Monolithic Power Systems is all set and will launch its next-generation innovative product, the 3A/mm² solutions, in 2026 to grow within the Enterprise Data Center segment. These are the key factors that help in generating growth through introducing new product offerings, along with broadening the market within automotive and AI/cloud computing. This shows that the company has strategically placed itself to be a part of the advantages, which are caused by emerging opportunities across several sectors.