Nvidia faces strong demand for its latest AI chips but struggles to keep up with supply, while analysts see 46% upside in the stock.

What happened: Nvidia's Grace Blackwell systems, including the GB300 and B300, are in high demand, but customers report they are becoming difficult to source. According to Wedbush analyst Matt Bryson, availability issues at this stage of the product cycle have not been seen since the Ampere/Hopper era, suggesting demand is rising faster than expected.

Why it matters: Nvidia remains the dominant player in GPU shipments over AMD, and the company has positioned itself ahead of rivals by securing DRAM and HBM (high-bandwidth memory) supply for 2026 and likely 2027. This supply chain positioning could give Nvidia a sustained competitive edge as AI accelerator demand continues to grow.

What to watch: Analysts have set a median price target of $300 for Nvidia stock, reflecting 46% upside from current levels, according to CNN's compilation of analyst targets. The key factor is whether Nvidia can resolve availability constraints while maintaining its supply chain lead.