After a high of $140 in June, NVIDIA (NVDA 3.66%) Shares have fallen amid a general market sell-off and reports that there may be delays in the release of Nvidia’s upcoming Blackwell chip.

In spite of all, UBS maintains its $150 price target and Buy rating on the stock. These price targets are typically just an estimate of where an analyst thinks a stock may trade in the near future. Based on the firm’s research, investors may be underestimating Nvidia’s earnings growth potential over the next few years.

Is Nvidia stock a buy?

UBS expects that the first Blackwell shipments could be delayed until the end of January. However, this is unlikely to hurt Nvidia’s revenue in the short term, as the company will be able to sell more H200 graphics processing units (GPUs) to customers who use them for artificial intelligence (AI) until Blackwell is available.

The company sees the strong engagement of AI researchers and growing demand from enterprises as positive indicators for Nvidia’s business. In fact, the growing demand for AI training for computers is not slowing down. AI models are not yet as sophisticated as they will be in 10 years, and the growing demand for AI training in the data center is the biggest driver of Nvidia’s revenue growth.

However, if Nvidia confirms a Blackwell delay in its next earnings report on August 28, it could limit the stock’s gains and even trigger a temporary sell-off, as it would introduce new uncertainty into Nvidia’s business outlook.

UBS’s price target represents 27 percent upside from the current share price of $118, which would push Nvidia’s future price-to-earnings ratio to a pricey 54. With share prices at these high levels, Wall Street traders will be looking for any excuse to take profits and sell, no matter how great Nvidia’s long-term growth prospects look right now.

Given the possibility of negative news that could affect Nvidia’s stock price in the short term, it may not hurt to wait to buy the stock until after the upcoming earnings report.