On Wednesday, DA Davidson reaffirmed a Neutral rating on NVIDIA stock (NASDAQ:NVDA), maintaining a price target of $135.00. The firm's analyst, Gil Luria, reviewed the original thesis from when coverage was initiated a year prior, acknowledging that their cautious stance on NVIDIA's outlook had positioned them among the less optimistic analysts. This stance comes despite NVIDIA's impressive 140.9% return over the past year and perfect Piotroski Score of 9, according to InvestingPro data, which indicates strong financial health.
Luria reflected on the key points of their initial analysis, concluding that the firm's stance remains unchanged, especially regarding the company's prospects for the year 2025 and beyond. DA Davidson continues to hold a conservative view, with expectations for NVIDIA's performance in the calendar year 2026 remaining the lowest on the street. This conservative outlook contrasts with NVIDIA's current momentum, showing 152.44% revenue growth in the last twelve months. InvestingPro analysis reveals over 15 additional key insights about NVIDIA's financial health and market position.
The firm also commented on the current focus of investors, which is likely to be on supply-side disruptions, including sales limitations to China and issues with Blackwell quality. DA Davidson suggested that while these supply issues might extend the current cycle, the main factor for NVIDIA's long-term success will be demand.
The reaffirmed $135 price target is based on a 35x multiple, with DA Davidson's analyst indicating that despite the past year's developments, their cautious outlook on NVIDIA's ability to meet consensus expectations for the calendar year 2026 and beyond persists. The firm's price target implies a valuation in line with their expectations for NVIDIA's future financial performance.
In other recent news, NVIDIA Corporation (NASDAQ:NVDA) has been making headlines due to various recent developments. The company's latest artificial intelligence chips, Blackwell, have been reported to have issues such as overheating and interconnection glitches. This has led to delays for prominent clients such as Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN) Web Services, Google (NASDAQ:GOOGL), and Meta Platforms (NASDAQ:META), causing some to reduce orders of NVIDIA's Blackwell GB200 racks.
In the world of quantum computing, NVIDIA's announcement of its first Quantum (NASDAQ:QMCO) Day at the GPU Technology Conference 2025 has sparked interest and caused a surge in quantum computing stocks, including Rigetti Computing. The Quantum Day event is set to gather industry leaders and experts to discuss the state of quantum computing and its trajectory.
Analysts have also been active in their assessment of NVIDIA. KeyBanc Capital Markets revised its outlook on NVIDIA, pointing to expected declines in demand for NVIDIA's Hopper GPUs and lower than expected contributions from Blackwell GPUs. Despite this, KeyBanc maintains an Overweight rating on NVIDIA. On the other hand, Citi analysts upheld their Buy rating and $175.00 price target for NVIDIA, even following the introduction of AI regulations by the Biden administration.
Fairlead Strategies provided a technical analysis update indicating bearish developments for NVIDIA stock, anticipating a bearish short-term outlook if the breakdown of its support from the daily cloud near $134 is confirmed. These are recent developments reflecting the ongoing story of NVIDIA's market performance and the impact of technological challenges on its future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.