Investors looking for alternative ways to profit off of Nvidia ‘s impending Blackwell chip rollout may want to take a look at these derivative plays. Shares of Nvidia fell 3% despite topping quarterly earnings expectations and Wall Street’s forecast. The stock has whipsawed amid concerns of slowdown following several quarters of monstrous revenue growth and lofty guidance beats. However, many analysts overlooked those worries and lifted their price targets, anticipating a mammoth ramp of Blackwell graphics processing units next year. However, Nvidia isn’t the only company that will benefit from Blackwell’s success. Bank of America’s Brad Lin views chip supplier Taiwan Semiconductor Manufacturing as one of the biggest knock-on beneficiaries due to the need for stronger computer power as AI models proliferate. TSM YTD mountain Shares this year “The results underscore robust structural Al demand, with limited digestion periods as adoption accelerates,” he said. “NVIDIA’s intact one-year cadence for datacenter GPU development is particularly favorable for TSMC, supporting [average selling price] content growth.” Coupled with a strong AI demand environment that show no signs of waning, Lin views the consist cadence of product launches from Nvidia as another tailwind that should improve Taiwan Semiconductor’s visibility. Citi’s Asiya Merchant sees a positive readthrough from the results for original equipment manufacturers such as Dell and Hewlett Packard Enterprise , which have alluded to a $171 billion to $174 billion total addressable AI market by 2027. Semiconductor product manufacturers MACOM Technology Solutions and Semtech are other potential beneficiaries from a strong Blackwell rollout, according to Stifel’s Tore Svanberg. He expects the quarter-over-quarter downtick in data networking revenue to reverse come January. “Net-net, we believe this suggests a more neutral [near-term] impact but a continued healthy positive [long-term] impact on DC networking-oriented companies in our coverage,” he wrote. This includes companies such as Marvell Technology , Credo Technology and Astera Labs .
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